Coimbatore: The monsoon, which hasn't brought enough rain and cheer to most parts of the country, is casting a long shadow on commodity prices. In the past two months, the prices of key food articles like pulses, potatoes and red chillies have shot up.
Chana, delivered in the Delhi market, has spurted up by 14.6% to Rs 2,520 for a quintal in just a week on the spot markets. Yellow peas have jumped by about 20%. "Prices of pulses have gone up because of the late kharif crop. The monsoon has not been good and this would impact production,'' says Anjani Sinha, MD and CEO, National Spot Exchange.
Potato prices have risen 20% since June and red chillies have become dearer by 16% on spot exchanges during the period. A quintal of potatoes, which quoted Rs 856 on June 1, now costs Rs 1,029. "The monsoon is one of the main reasons for the price spike. The price forecast is normally based on the acreage sown. This year the acreage sown has been less,'' says Anil Mishra, CEO, National Multi Commodity Exchange.
The impact would be high on rain-dependent crops such as pulses and oilseeds. Chana, mustard, guarseed, soyabean and groundnut would bear the brunt of a poor monsoon, say industry officials. The production of pulses had come down to 2.37 million tonnes from 3.08 million tonnes last year. The production for the current year is expected to slide further because of poor rains. "If the monsoon is not good this month, we would have serious problems,'' says Madan Sabnavis, chief economist, National Commodity and Derivatives Exchange (NCDEX). Import prospects are not good in pulses with Myanmar, one of the largest suppliers of urad and tur, is not releasing enough stocks into the market, say observers. This, coupled with lower domestic production, is bound to push prices higher, they say.
"We have a deficit in pulses and when imports happen, prices would go up,'' says NMCE's Mishra. Wholesale and retail prices of tur and urad dal have already seen a quantum jump. Sowing has to be completed by mid-July for pulses and even if the rains come, it would be late for the crop, say observers. The monsoon has left most of northwest India untouched. The futures markets have already started reflecting the price trend with the September and October contracts for chana and potato quoting higher than existing spot rates.
Chana, delivered in the Delhi market, has spurted up by 14.6% to Rs 2,520 for a quintal in just a week on the spot markets. Yellow peas have jumped by about 20%. "Prices of pulses have gone up because of the late kharif crop. The monsoon has not been good and this would impact production,'' says Anjani Sinha, MD and CEO, National Spot Exchange.
Potato prices have risen 20% since June and red chillies have become dearer by 16% on spot exchanges during the period. A quintal of potatoes, which quoted Rs 856 on June 1, now costs Rs 1,029. "The monsoon is one of the main reasons for the price spike. The price forecast is normally based on the acreage sown. This year the acreage sown has been less,'' says Anil Mishra, CEO, National Multi Commodity Exchange.
The impact would be high on rain-dependent crops such as pulses and oilseeds. Chana, mustard, guarseed, soyabean and groundnut would bear the brunt of a poor monsoon, say industry officials. The production of pulses had come down to 2.37 million tonnes from 3.08 million tonnes last year. The production for the current year is expected to slide further because of poor rains. "If the monsoon is not good this month, we would have serious problems,'' says Madan Sabnavis, chief economist, National Commodity and Derivatives Exchange (NCDEX). Import prospects are not good in pulses with Myanmar, one of the largest suppliers of urad and tur, is not releasing enough stocks into the market, say observers. This, coupled with lower domestic production, is bound to push prices higher, they say.
"We have a deficit in pulses and when imports happen, prices would go up,'' says NMCE's Mishra. Wholesale and retail prices of tur and urad dal have already seen a quantum jump. Sowing has to be completed by mid-July for pulses and even if the rains come, it would be late for the crop, say observers. The monsoon has left most of northwest India untouched. The futures markets have already started reflecting the price trend with the September and October contracts for chana and potato quoting higher than existing spot rates.
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