Barley prices could increase in the coming months going by the trend of futures contract at leading agri commodity exchange National Commodity and Derivatives Exchange of India (NCDEX). | |
| The July contract of barley at NCDEX is currently quoted at Rs 785 per quintal, while August delivery is quoted at Rs 797 a quintal, September Rs 811 per quintal and October Rs 822 per quintal. |
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| The July contract of barley has been moving in the range of Rs 780-90 in the past fortnight except on June 12 when it reached at Rs 814. The contract opened at Rs 798 per quintal when launched in February. |
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| "Even if there is a correction, prices are expected to be in the range of Rs 800 per quintal," a commodity analyst said. |
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| The spot prices, however, recovered marginally to Rs 732 per quintal on June 16 from Rs 727 a quintal on June 1, 2007. Still, it is short of Rs 47 compared to Rs 779 per quintal recorded on the first day of May. |
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| "Lesser production than demand is the main reason for the increase in prices," a Jaipur-based barley trader said, adding farmers are shifting to more lucrative crops in spite of rising prices of barley. |
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| The production of barley is likely to touch 1.34 million in 2006-07 season, up by 10 per cent from 1.22 million tonne in the previous year. |
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| However, the increased output falls shot of the government target of 1.65 million tonne. |
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| Barley, grown during the rabi season, is mainly used as an animal feed in the country. |
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