Traders and distributors are not stocking these products, which they usually do during the festive season, as supply is strong and they are building stocks as per need.
Businesses are hoping that stable prices will boost rural consumption in the festive season as the area under kharif cultivation has increased this year due to abundant monsoon rains. According to data released by the Department of agriculture As of September 6, the area under kharif cultivation increased by over 2.3 million hectares compared to last year.
“As prices are stable, we expect good demand,” said Adani Wilmar Managing Director Angshu Mallick. “But so far, demand for consumer staples from the eastern market for Durga Puja is yet to come through, even though the Puja is a month away. There is no demand from domestic markets for small-sized packets, which is the trend every year during this time,” he said.
Mallick said there were some disruptions in the supply chain in the first week of September due to heavy rains in certain parts of the country. “That has been sorted out and the supply chain is now normal. Prices of pulses, basmati rice “Prices of edible oils are stable now and there is almost no chance of these products going up in price during the festive season.”
Wheat prices have risen 15% in the past month, he said, but rice prices are expected to remain stable during the festive season. Basmati Rice prices are now at a five-year low, said Suraj Agarwal, chief executive of RiceVilla, a rice marketing and export company. “There is also sufficient stock of rice in the hands of the government, which needs to be sold in the market. Therefore, prices are unlikely to go up. Also, stockists are not creating any inventory. They are buying according to demand because they know prices are unlikely to go up.” The area under kharif paddy as of September 6 was 1.59 million hectares more than last year.
Pradeep Chowdhry, managing director of Gemini Edibles & Fats, said prices were mostly stable but their movement would depend on the timing of harvest. “The concern for the edible oils sector is heavy rains in the Madhya Pradesh“Maharashtra, Rajasthan and Telangana are delaying soybean harvest. Prices have remained stable so far, but availability of edible oils may become tighter in the future if the harvest is delayed,” Chowdhry said. “Mustard oil prices have gone up 20% to Rs 130 per kg as the government is yet to release the stock of mustard seeds it had procured from farmers.”
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