Foodgrain prices up 5-15% as delayed monsoon hits sowing

Prices of kitchen staples like rice and rice products like poha, murmura, besides jowar, bajra and chicken have shot up by 5-15% in the last fortnight after the slow progress of monsoon delayed the sowing of kharif crops. Prices of wheat and pulses too have been ruling firm at high levels despite government’s price control measures.

Market functionaries and trade analysts expect food prices to say firm or increase further till rainfall turns favourable for the sowing.

Paddy and pulses like tur, moong, urad, oilseeds like soyabean and groundnut are some of the key staple foods grown in kharif season.

“The prices of rice and rice products like poha and murmura have increased by about 15% in last 2 weeks as the monsoon has been delayed. Prices of jowar and bajra are also up, while the prices of pulses and wheat have not declined after the stock limit,” said Rajesh Shah, director of Pune-based Jairaj Group. He added, “The prices of cereals are expected to stay firm or increase further if we do not get timely and sufficient rainfall.”

“Delay in monsoon by another 7-10 days may have an adverse impact on the acreages under of pulses crops which may tend to price rise for the overall pulse complex. For other key crops like paddy, if the inadequate rainfall situation prevails till the end of July, it may lead to decline in paddy acreages and production leading to further price rise,” said Pushan Sharma, director (research), CRISIL Market Intelligence and Analytics.Late onset of summer and persistent high temperatures in June due to delayed rainfall had reduced productivity of poultry farms, boosting chicken prices.