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Food prices to trouble Indians during festive season
29 July 2011: Indian consumers are likely to trouble due to the rising food prices in the upcoming festive season. India's food price index rose 7.33 per cent in the year to July 16.
Patchy rainfall in central and southernIndia at the beginning of monsoon season and heavy rainfall in July in few areas delayed sowing and affected growth of some crops, lifting prices ahead of the festive season.
Record high sugar prices in the world market and the government's decision to allow exports of additional 500,000 tonnes also contributed to the price rise in domestic market. Rising vegetable prices are also disrupting household budgets.
Average onion price at the country's largest wholesale onion trading hub in Lasalgaon, in western Maharashtra state, has jumped 55 per cent in two months on depleting stockpiles from last year's winter-sown crop and plantation delay this year.
Vegetable supplies have been disrupted due to erratic rainfall and are unlikely to improve before September. Spot prices of chana, or, chickpea, the most consumed pulse in India, have also risen 24 per cent in the past two months, while chana futures are now close to their highest level in nearly five years. Prices of other pulses like tur, urad and moong have also risen over 10 per cent during the period while sugar and soyoil prices are up over 4 per cent.
India meets nearly half of its edible oil requirement through imports, mainly of palm oil from Indonesia and Malaysia. In 2009 higher prices of pulses hiked and this year chana is likely to pinch consumers.
As on July 22, acreage under summer-sown pulses in India stood at 4.54 million hectares against 4.96 million hectares a year ago. 8 per cent rise in support price of rice and permission to export 1 million tonnes of the grain allowed rice prices to gain over 4 per cent in the past one month, while wheat was largely steady due to ample.
Source: Economic Times