As market arrivals have peaked, mandi costs of key rabi crops — wheat and mustard — are ruling above the respective minimal help costs (MSPs). In the case of wheat, sturdy demand from export markets has pushed the costs up, whereas home demand for mustard is excessive.
Chana (gram), one other winter crop, has been ruling beneath MSP for the previous couple of weeks due to bumper harvest and better buffer shares with the federal government. The benchmark costs of key greens reminiscent of tomato and potato are at the moment ruling above the costs prevailing a yr in the past due to decrease manufacturing within the present crop yr (2021-22). Onion costs have declined sharply beneath final yr’s degree due to a sturdy rabi harvest.
Traders advised FE that for mustard, the largest home oilseed selection, costs at Bharatpur mandi, Rajasthan, are at the moment ruling round Rs 6,800 per quintal towards the MSP of Rs 5,050 a quintal, whereas wheat in Sehore mandi, Madhya Pradesh, is at the moment being offered at Rs 2,150 a quintal towards MSP of Rs 2,015 a quintal.
“Despite it being peak arrival season, farmers are slowly bringing in their produce to mandis, anticipating higher prices in coming months,” Suresh Jain, secretary, mustard mandi board, Bharatpur, stated. The arrival within the devoted mustard mandi is at the moment round 5,000 quintal every day which was greater than 8,000 quintal a yr in the past.
Mustard costs, regardless of the anticipation of a document seed manufacturing of 11.45 million tonne (mt) in 2021-22 crop yr (July-June), have been primarily pushed by anticipation of disruption of imports of sunflower oil from Ukraine and Russia. Mustard accounts for 39% of India’s home edible oil manufacturing.
However, for chana, which has a share of round 45% within the whole pulses manufacturing, mandi costs at Latur, Maharashtra, are round Rs 4,800 a quintal at current, towards the MSP of Rs 5,230 a quintal. For build up buffer shares, the farmers’ federation National Agricultural Cooperative Marketing Federation of India (Nafed) has commenced MSP procurement operations in key producing states. Around 0.65 mt of chana has been procured from the farmers to this point by Nafed.
“Mandi prices are driven by factors including surge in wheat exports, opportunities increasing because of global demand, rising domestic demand for edible oils” PK Joshi, former director (South Asia), International Food Policy Research Institute, stated.
In the case of three key greens, whereas onion costs are ruling 25% lower than a year-ago interval at Rs 600 a quintal at Lasalgaon, Maharashtra, the benchmark costs of potato at Agra, Uttar Pradesh and tomato costs at Kolar, Karnataka are ruling 19% and 78% greater than earlier yr at 860 a quintal and
1,070 a quintal, respectively.
Traders stated rabi onions, which account for round 60% of the overall manufacturing, will meet the home demand until October, when early kharif crop arrives. There are not any provide constraints anticipated within the coming months. Potatoes are at the moment being saved within the chilly storage for assembly provide wants until October whereas tomato costs are witnessing periodic fluctuations relying on provides.
Experts say that larger costs realised by the farmers is predicted to spice up their earnings and assist brighten forthcoming Kharif prospects on condition that India Meteorological Department has predicted ‘normal’ monsoon this yr.
Source: www.financialexpress.com”