The consumer affairs ministry, which monitors commodity prices, has sought regular updates from the agriculture ministry on projected output for key commodities such as oilseeds, pulses and onions, in a bid to stabilise supply and prices, and intervene effectively in trade policy. This follows a sharp rise in onion prices recently despite prior information that heavy rain had damaged the crop, officials said.
“A close monitoring of crops is needed right from the stage of sowing to harvesting to estimate demand and supply,” a senior consumer affairs ministry official said.
“We need to put in place a proper mechanism for timely intervention in case of any adverse situation. This kind of inter-ministerial coordination will ensure that there is no shortage of essential commodities even in the wake of a weak crop, keeping prices in check,” the official added.
The ministry may suggest export of a commodity if there is excess production and timely import when output is low.
“It takes around three to four months for market and price discovery in global trade. If we furnish information with recommendation regarding the crop size to the commerce ministry beforehand, it will be easier for them to ensure balance between demand and supply,” the official said.
Prices of edible oil and pulses are also likely to rise.
Crude palm oil prices have risen more than 26% in the last two months. Similarly, prices of pulses like tur and urad have jumped around 30%.
Fearing a further increase in the prices of pulses, the government last week offloaded 850,000 tonnes of pulses from its buffer stock to states at average market rates.
This includes 320,000 tonnes of tur, 200,000 tonnes of urad, 150,000 tonnes of moong, 120,000 tonnes of chana and 57,000 tonnes of masoor.
Source: Economic Times
