The Hindu Business Line : Dearer food: No let-up in commodity prices

Mumbai, March 21 The Government measures to tame the rising commodity prices seem to have little impact as prices of some of them such as chana, yellow peas, masoor, turmeric, refined soya oil and mustard oil have jumped more than 10 per cent in the last three months.

Other commodities such as sugar, wheat, maize and guarseed also followed the rising trend.

Chana in the spot markets of Delhi rose 20 per cent to Rs 2,673 per quintal in the last three months ended March 19. Yellow peas prices in Mumbai main markets increased by 17 per cent to Rs 2,206 per quintal. Masoor in Indore was quoting 21 per cent higher at Rs 3,600 per quintal during the same period.

Cumulative deficit

While turmeric was up 15 per cent at Rs 3,051 per quintal, refined soya oil and mustard oil were marked up by 10 per cent to Rs 644 per 10 kg and Rs 596 per 10 kg respectively. Groundnut oil prices rallied 5 per cent to Rs 715 per 10 kg in the last three months.

According to a NCDEX report, “Though groundnut production was higher this year by 24-lakh tonnes, it could not make up for the shortfall of 31-lakh tonnes witnessed last year. The cumulative deficit still exists, which will keep prices high.”

Apart from the rising demand for the cooking medium, reduction in customs duties and freezing of the base prices for imports of all types of edible oils since July 2007, have tempted refiners and stockists to book for higher imports, the report said.

After lying low during last year, sugar prices seem to have gathered pace. It has moved up 7 per cent to Rs 1,620 per quintal.

“There is a good demand for sugar in the international markets, where prices are appreciating after a hiatus. India has emerged as a big exporter after it toppled Brazil to become the largest producer of sugar,” said Mr Sadanand Patil, a Mumbai-based sugar trader.

Wheat prices in Karnal (Haryana), one of the major mandis, has increased by 4 per cent to Rs 1,120 per quintal.

Green revolution needed

Even the prices of cattle feeds such as maize and guarseed have gone up.

Guarseed and maize prices in spot markets went up by 10 per cent and 2 per cent to Rs 1,912 per quintal and Rs 713 per quintal respectively. Prices of commodities could have been much higher at the retail level.

Mr V.S. Sachin, a Mumbai-based economist, said: “Commodity prices are increasing worldwide and India cannot remain isolated. Farm growth is expected around 2.6 per cent in FY08 compared with GDP growth of 8.8 per cent. India needs another green revolution.”

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