Source: Business Standard
The all-India average wholesale price of gram that had peaked at Rs.6,239 a quintal in September 2012 has moved down, averaging Rs.4,299 a quintal in February. Cheap imports and bumper crops have brought prices down over the past year and a half. However, demand pressures have kept retail prices from sliding significantly so far. From its peak of above Rs.66 a kg in September 2012, the retail price of gram returned to March 2012 levels of Rs.49 a kg this January. The rise in production in recent years has been due to higher minimum support price (MSP) to incentivise farmers. Yet, with a record harvest expected, farmers in Madhya Pradesh, the largest producer in the country are counting on procurement to keep the prices from crashing.
IPM data till week ending March1. The Indicus Price Monitor (IPM), a product of Indicus Analytics Pvt Ltd, tracks real-time wholesale prices for 60 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of the IPM differ from the corresponding Wholesale Price Index (WPI). However, broad trends are in sync.