Food prices to ease post-June as above normal monsoon predicted in India
food prices to come down after rains, as the India Metrological Department (IMD) has predicted above-normal monsoon, the Ministry of Finance said in its recent monthly economic review.
The report said that above normal rainfall will lead to higher production of crops.
«Further easing of food prices is on the anvil as IMD has predicted above-normal rainfall during the monsoon season, which is likely to lead to higher production, assuming good spatial and temporal distribution of the rainfall,» the March 2024, monthly economic review of the finance ministry said.
In India, food inflation has eased off to 8.5 per cent in March from 8.7 per cent in February. Increased food inflation primarily results from elevated prices of vegetables and pulses. To address this issue, the government has implemented measures such as imposing stock limits to prevent hoarding, enhancing reserves of essential food items, and periodically releasing them in the open market.
It has also eased imports of essential food items and channelized supplies through designated retail outlets.
Government sources have revealed that negotiations are underway with emerging markets such as Brazil and Argentina for long-term contracts regarding the importation of pulses. Specifically, discussions are nearing completion to import approximately 20,000 tonnes of urad from Brazil, and negotiations for importing arhar from Argentina are also in their final stages.
The government has also contracted with Mozambique, Tanzania and Myanmar to import pulses.
Wit
