Last Updated : 25 July 2012 at 14:15 IST
High edible oil, coarse cereal price to hike India's food inflation
India's food inflation rates are likely to remain higher for the upcoming months with the hike in price of coarse cereal, edible oils in the country.
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MUMBAI (Commodity Online): India's food inflation rates are likely to remain higher for the upcoming months with the hike in price of coarse cereal, edible oils in the country.
India's annual food inflation rates in Consumer Price Index (CPI) during the month of June stood at 10.71%
The deficient rainfall across the country has affected the production of oilseeds and coarse cereals in country causing prices to move upwards.
According to fourth advance estimates released, oilseed production is lowered to 30 million tons compared to earlier estimates of 33.6 million tons and coarse ceral production is estimated at 42.3 million tons.
While, with the defreeze of tariff value on imported RBD palmolein and aligned with global prices amid rising demand on ongoing festival demand, the price of the commodity surged higher. This also hiked the price of other oilseeds in the country.
India imports more than 50% of the the total consumption to meet the requirement. And with the depreciating rupee against dollar, the price of the commodity in the domestic market surged further.
Meanwhile, the Union ministry of food has recommended to continue the subsidy for edible oil distribution to curb the rising price. Under the subsidy scheme, the edible oil wqould be available at Rs 15 per Kg to individual states.
The coarse cereal includes maize, jowar (sorghum), bajra (pearl millet), ragi and small millets among others and edible oil includes CPO, Palmolein, soyoil, rapeseed oil, sunflower oil.
In India's National Commodity and Derivatives Exchange (NCDEX), for August delivery, soyoil traded at Rs 791.5 per qtl, Maize at Rs 1554 per qtl and in Multi Commodity Exchange (MCX), the CPO traded at 569.30 per qtl on 25th July at 12:15 IST.
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