Indicus price monitor

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Despite a record harvest in 2011-12, wheat prices moved up through 2012. Average all-India wholesale price rose from Rs 1,444.76 a quintal in January to cross Rs 1,800 a quintal by December. This year, even though the 2012-13 output was marginally below the previous year's, prices stayed above Rs 1,800 a quintal.

For households, the average all-India retail price of atta or flour was the highest at Rs 22.87 a kg in August. Rising minimum support price (MSP) has been one reason for higher prices. For the 2013-14 marketing season, MSP at Rs 1,350 a quintal was around 5% higher than the previous year's.

Another issue keeping price pressure up is that state governments have vied with the Centre in offering bonuses to increase procurement in states. With high wheat stocks, exports were allowed.

Till June, 4.2 million tonnes were exported, less than the target of 4.5 million tonnes, due to high set price. This month another set of tenders have been put out, with no concession in the price of $300 a tonne, keeping prices from moderating significantly.