Delayed monsoon: foodgrain prices up
STORIES, ANALYSES, EXPERT VIEWS
Prices of kitchen staples have shot up by 5-15% in the last fortnight after the slow progress of monsoon delayed the sowing of ‘kharif’ (monsoon crops) crops. Prices of wheat and pulses too have been ruling firm at high levels despite government's price control measures.
Market functionaries and trade analysts expect food prices to say firm or increase further till rainfall turns favourable for the sowing.
"Delay in monsoon by another 7-10 days may have an adverse impact on the acreages under of pulses crops which may tend to price rise for the overall pulse complex. For other key crops like paddy, if the inadequate rainfall situation prevails till the end of July, it may lead to decline in paddy acreages and production leading to further price rise," said Pushan Sharma, director (research), CRISIL Market Intelligence and Analytics.
