Rice has become costlier, but the spike is much slower than wheat, which has registered double-digit growth in retail prices year-on-year. Consumer Affairs’ daily price data shows that prices of most essential commodities have increased till August 23 as compared to the corresponding period last year. The delay in sowing of paddy in summer Kharif season is further worrying.
According to the data of the Department of Consumer Affairs, the all India average as on August 23 retail at the cost of rice 6.2% higher than 37.63 per kg Last year it was Rs 35.43 per kg on the same day. Meanwhile, the price of wheat climbed 14% 30.89 per kg 27.09 per kg on August 23 last year.
However, the price of wheat is low 31.04 per kg on 22nd August 2022. On Thursday, the price of wheat had climbed nearly 22% on a year-on-year basis.
Besides, the price of wheat flour (atta) rose by 14.9% 35.34 per kg as on August 23, 2022, as against 30.76 per kg in the same period a year ago.
According to a report by PTI, the rising trend in the retail price of rice was due to supply concerns and fall in production due to reduction in paddy sowing in the current kharif season. Whereas for wheat, both retail and wholesale prices are under pressure due to a fall in domestic production by 106.84 million tonnes in the 2021-22 crop year. In addition, heat wave conditions in the northern region have affected wheat production.
Earlier today, while talking about the performance of the market, Mitul Shah, Head of Research, Reliance Securities said, “Concerns have risen as paddy sowing continues as the area under the major Kharif crop declined by 8.25% to 343.70 lakh hectares.” It was till last week. The ongoing Kharif season.” The figures are from the Ministry of Agriculture.
Bank of Baroda economist Janhvi Prabhakar in the latest research note highlights that till August 20, 2022, the area under pulses (5.3%) has declined as compared to the previous year. There has been a significant decline in the area under pulses in tur (7.2%), urad (5.1%), and moong (4.6%). Area sown for rice (12.4%), oilseeds (1.3%), and sugarcane (1.2%) remains lower than last year’s level. On the other hand, cotton acreage has increased to 6% year-on-year, from 5.3% in the same period last week.
Notably, according to the Food Corporation of India, stockpiles in August fell to the month’s lowest level in 14 years, while wheat inflation has been hovering around 12%.
In the Minutes of the Monetary Policy Committee (MPC) for the policy for August 2022, RBI Executive Director Dr Rajeev Ranjan said, “Going forward, although the fall in international commodity prices and the progress of the monsoon provide room for optimism, particularly There is considerable uncertainty mainly from the spatial and temporal distribution of monsoon and its implications for kharif paddy production, depreciation of the Indian rupee exchange rate and pending pass-through in services. Importantly, the global geopolitical landscape – the source of much Regarding price shocks – remains volatile.”
Further, the RBI in its outlook stated that the shortfall in paddy sowing needs to be closely watched, although the rice stock is well above the buffer norms.
The Center has huge reserves of 396 lakh tonnes of rice and experts are of the view that the government will intervene if the prices rise sharply.
Meanwhile, on August 23, the price of Arhar/Arhar Dal increased by 4.44%. Against 110.04 per kg 105.36 per kg on the same day last year. Sugar and milk prices up 3.73% and 7.28% year-on-year 42.02 per kg and 52.73 per kg respectively.
Conversely, gram dal became cheaper due to fall in price 73.48 per kg. From 74.49 per kg on 23 August 2021.
In addition, the price of ground oil (packaged) rose 8.6% year over year 188.2 per kg, while the price of vegetable (pack) climbed 14.29% year-on-year 153.46 per kg on 23 August.
Among vegetables, the retail price of potatoes increased by a whopping 35.06% year-on-year 27.81 per kg, and tomato prices increased 15.4% year-on-year 34.78 per kg. However, onion prices fell 25.86 per kg as on August 23 29.51 per kg in the same period a year ago.
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