In what could help the government to plan policy and market interventions to cool off the increasing commodity prices, the government of late took a detailed review of the current price situation of essential commodities, which are likely to fuel inflation.

Share Market Live

NSE

According to highly placed government sources, an inter-ministerial committee on agriculture-commodities in its recent review took stock of the current price situation of rice and wheat, edible oils, oilseeds, pulses, onion, potato and tomatoes.

As per the analysis, when it comes to the prices of “onion, tomatoes and potatoes, the panel noted that the prices have seen a substantial rise in both retail and wholesale markets,” sources said.

Similarly, when it comes to the other commodities and staples, “six key varieties of edible oil used in India have seen a price increase ranging between 13-25% per quintal, on a yearly basis,” a trend that the panel noted.

For rice and wheat, the “Monthly average of Wholesale prices of Rice increased by 7.32% (Y-O-Y) and Monthly average of Retail prices of Rice Increased by 8.33% (Y-O-Y). For wheat, the Monthly average of Wholesale prices increased by 3.79% (Y-O-Y), and the Monthly average of retail prices of wheat Increased by 3.93% (Y-O-Y),” sources said quoting the discussions of the panel.

Meanwhile, the government has asked NAFED to keep a close watch and to do extra procurement of these staple commodities so that stocks can be released to cool off the prices, sources said.

For the edible oil space, the government is in “constant touch with Indonesia to increase Palm Oil exports to India so that the prices can be kept under check,” sources told CNBCTV18 quoting the content of discussions.

India has sought a detailed report of the Palm Oil Situation in Indonesia and it exports to other countries as well, apart from India. As per the estimates given by the Indonesian government, India expects that Indonesian Palm oil Export to India expected to grow by 23 percent by end of this fiscal, sources added.

“There have been extreme weather events in the form of heavy rains in some parts of the country which affected the standing crops,” Agriculture Minister Narendra Singh Tomar said in a written reply in the Rajya Sabha.

Tomar also shared the state-wise details of crops affected due to heavy rains, as reported by the state governments.

It remains to be seen whether these measures are enough or the government will have to plan afresh to keep staple prices under check so that inflationary pressures remain under control.

First Published:Sept 18, 2020 6:17 PM IST