Business Standard

Foodgrain prices increase up to 15% in 2 weeks due to delays in monsoon

Despite government price controls, experts predict that the lack of proper rainfall will result in prices staying high in the foreseeable future

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BS Web Team New Delhi

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Foodgrain prices for kitchen staples such as rice and rice products, and even chicken have increased by 5-15 per cent in a fortnight due to monsoon delays.

Kharif season, which normally begins in June and lasts till November (depending on region) in India, has been in slow progress this year, causing disruption in the sowing and harvesting of kharif crops, also known as monsoon crops.

Rice is the most common kharif crop, both paddy and deepwater, along with jowar, maize (corn) and millet. Many seed plants such as soyabean and groundnut are also staple foods produced, as well as pulses such as tur, moong, and urad. Many fruits and vegetables are also grown during this season.

However, due to delays and the slow progression of the monsoon, prices of these kitchen staples have shot up.

Despite government price control methods on wheat and pulses, the prices remain the same and have not declined in the last two weeks.

According to a report by the Economic Times (ET), trade analysts believe that the prices will either stay put or shoot up higher until the rainfall necessary for sowing kharif crops occurs.

Pushan Sharma, director (research) at CRISIL Market Intelligence and Analytics told ET that if the monsoon is delayed for another 7-10 days, the prices of pulses may rise higher. The adverse impact of the lack of proper rainfall in the country may even lead to a price rise of staples such as paddy rice.

Business Standard had earlier reported that the Centre had discontinued the sale of rice and wheat under the Open Market Sale Scheme (OMSS) to state governments earlier in the month. This move particularly hit Karnataka as it was offering free grains to those below the poverty line.

The government, however, did allow the continuation of the sale of rice under OMSS for northeastern states, hilly states, and states facing law and order situations, natural calamities at the rate of Rs 3,400 per quintal.

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First Published: Jun 20 2023 | 1:25 PM IST

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