COMMODITY FOR THE WEEK - RICE
Rice has seen strong price pressure this year, with delayed rain and a 16% rise in minimum support price. The kharif crop accounts for 80% of the annual output; monsoon shortfall has led to official kharif estimates at 6.5% less than last year’s output, and sowing is lagging even in the rabi season. Yet, as on December 1, the Food Corporation of India’s rice stocks stood at 30.6 million tonnes, a decadal high. India also emerged as the world’s top rice exporter this year, though the Food & Agriculture Organisation does not anticipate similar volumes next year. Mandi prices have risen and stayed up. While global prices are set to remain high over the next four months, with demand from Thailand, China and Africa, domestic prices will continue to show the stress of low expected production.(Click on graphic)
The Indicus Price Monitor, a product of Indicus Analytics Pvt Ltd tracks real time wholesale prices for 62 agricultural products from more than 3,000 mandis across the country. Due to differences in methodology, the actual levels of IPM differ from the corresponding WPI. However, broad trends are in sync with each other.
Available at http://www.indicus.net/IndianEconomy/inflation
