Despite a fall in demand and poor offtake in foodgrains, the overall situation remained satisfactory during the samvat year 2054 (November 1997-October 1998). The samvat 2055 will have 13 months as per Hindu calender which is expected to cause a bull run, informed Sharad Maru, ex-president, Grain, Rice and Oil Merchants Association (GROMA). Generations of Hindus believe in the mytholgical power of an extra month that is believed to instill bullish sentiments in trading businesses.Despite the poor demand at the APMC (Agriculture Produce Market Commission) wholesale market at New Bombay, prices of wheat, rice and pulses have witnessed an uptrend during the samvat 2054 as compared to the previous samvat year 2053.
According to another commission agent, wheat prices have spiralled upward during the year. The common variety wheat flared up by Rs 125 per quintal. This variety was traded around Rs 675 a quintal in the beginning of the year and is now being traded around Rs 800 a quintal.
Maru said, in newsamvat wheat and rice prices will harden or will atleast maintain their level, as their trading is generally administered through government agencies like Food Corporation of India (FCI). Other factors like local and export demand also affects the price level.
During the year government procurement of wheat increased 125 lakh tonnes from 93 lakh tonnes. Foodgrain stock with the government is about 240 lakh tonnes. Procurement of wheat increased as minimum support price for wheat (including bonus) was hiked to Rs 510 against Rs 475 per quintal.
This year rice export has increased substantially. As per traders estimate, rice exporters have contracted to export 7,00,000 to 7,50,000 tonnes rice for September to Mid-December shipments to destinations as Africa and mainly Bangladesh.
Due to this kind of export demand throughout the year rice prices have increased by around Rs 250 per quintal during samvat 2054. In coming days rice price is expected to increase further.
Pluses prices have also shown risingtrend during the year. Toor (Arhar) prices were around Rs 2500 per quintal and are now quoted around Rs 3500 to Rs 4000 per quintal. Urad dal prices have increased by around Rs 700 a quintal during the year.
In new year prices of Arhar, urad and moong are expected to remain firm as their crops have been damaged due to untimely and heavy rains, which will create shortage in supply.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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