The prices of peas have soared to all-time high of Rs 160 per kg, traders said on Sunday. Until a few days ago, the peas were selling between Rs 90-100 per kg, they said.
Tomato prices have jumped from Rs 40 to Rs 60 per kg in the retail markets this week, traders said, adding that there were short supplies of both peas and tomatoes from neighbouring Himachal Pradesh. Until a few days back, tomatoes, which are integral to preparation of most Punjabi dishes, were selling at around Rs 30 per kg.
Traders said that prices of other commonly consumed vegetables were also high in comparison to their normal rates. Carrots are selling between Rs 40-50 per kg while beans are available in the retail at around Rs 70 per kg. Lemon prices have also soared from Rs 20 for 250 grams to Rs 30 for the same weight. However, onion prices have fallen slightly from earlier Rs 50 per kg to Rs 40 per kg now. As local produce of potato has now started to enter the markets, their prices, too, have started to come down from earlier Rs 25 per kg to Rs 15 per kg now. Traders point out that prices of most vegetables is likely to stabilise from next month when more supplies will reach the markets.
Meanwhile, the Industry body Assocham has said that rice prices may shoot up and reach a “boiling point” in the coming months due to depleting stocks and likely fall in its kharif output. The report, however, contradicts the current price trend in the market, where wholesale prices of non-basmati prices are ruling down at Rs 25 per kg as against Rs 30 per kg last year.
Similarly, wholesale rates of premium basmati rice have declined sharply by about 30 per cent to Rs 44-45 per kg at present from Rs 62-65 per kg last season, as per traders.
Whereas industry body Assocham in its study said after pulses, onion and mustard oil, rice prices may trouble consumers if timely adequate safeguards are not taken.
“...prices of rice may shoot up and reach a boiling point in the coming months as the stock of the key staple cereal is depleting fast owing to deficient rains and fall in output,” the study said. As per the government estimates, kharif rice production is estimated at 90.61 million tonnes in 2015-16 crop year.
“...this is unlikely to be achieved due to severe deficit rains in Punjab, Haryana, Uttar Pradesh, Bihar, Maharashtra and Karnataka and the best that could be achieved is 89 million tonnes,” it said adding that overall rice output may be around 103 million tonnes during 2015-16. That apart, the study said rice stocks have declined in last three years from 24.59 million tonnes in 2012 to 13.89 million tonnes (plus unlimited paddy 3.61 tonnes) in stocks at present. “Increasing export outgo on account of PDS (Public Distribution System) and other welfare schemes will continue to weigh on availability in the open market.
India’s food industry to be worth $65 billion by 2018
Country’s food industry is expected to grow 11 per cent annually to reach $65.4 billion (about Rs 4 lakh crore) by 2018, according to a research report. The industry is presently valued at $39.71 billion (Rs 2,476.8 billion), the joint report by IIM-Calcutta and Academic Foundation said.
“Food and grocery constitute a substantial part of India’s consumption accounting for around 31 per cent of the consumption basket,” the report said. In contrast, consumers in other countries spend a much lower proportion of their income on food and grocery.
While US spends 9 per cent, Brazil and China spend 17 per cent and 25 per cent respectively on food and grocery, the report said. Food is also the largest segment in India’s retail sector, which was valued at $490 billion in 2013, it added.