 "Indicus price monitor")
Commodity for the week: Rice
Even as inflation trended down over the past year, coming off the highs seen in 2013, prices are still high for consumers. Significantly, rising prices have persisted despite the record output of over 100 million tonnes for two years - 2011-12 and 2012-13. Currently, while the 2nd Advance Estimates for 2013-14 have set production at 106.19 million tonnes, the kharif crop estimate is marginally lower than before and and the rabi crop has been hit by heavy unseasonal rains. The quantum and quality of harvest is, therefore, suspect, putting pressure on prices; the average retail price of rice has exceeded Rs 27 a kg since October, with no sign of coming off from this level. The average all-India wholesale price of rice for March was the highest ever at Rs 2489.92 a quintal. While the rise in minimum support price (MSP) from Rs 1,000 a quintal for common paddy in 2010-11 to Rs 1,350 a quintal in 2013-14 is the reason behind the price rise, there is considerable pressure coming from high global demand for Indian rice, both basmati and non-basmati varieties.
Even as inflation trended down over the past year, coming off the highs seen in 2013, prices are still high for consumers. Significantly, rising prices have persisted despite the record output of over 100 million tonnes for two years - 2011-12 and 2012-13. Currently, while the 2nd Advance Estimates for 2013-14 have set production at 106.19 million tonnes, the kharif crop estimate is marginally lower than before and and the rabi crop has been hit by heavy unseasonal rains. The quantum and quality of harvest is, therefore, suspect, putting pressure on prices; the average retail price of rice has exceeded Rs 27 a kg since October, with no sign of coming off from this level. The average all-India wholesale price of rice for March was the highest ever at Rs 2489.92 a quintal. While the rise in minimum support price (MSP) from Rs 1,000 a quintal for common paddy in 2010-11 to Rs 1,350 a quintal in 2013-14 is the reason behind the price rise, there is considerable pressure coming from high global demand for Indian rice, both basmati and non-basmati varieties.
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