Fed’s Caution
The US Federal Reserve’s decision to lower its benchmark interest rate to a range of 4.25-4.50 per cent marks a turning point in its monetary policy.
The average retail prices of essential food items, including rice, wheat and atta, have significantly increase in the last one year.
The prices of wheat and atta have gone up considerably in the last few months and as per traders in wholesale markets in the national capital, wheat rates have seen a spike crossing a record Rs 2,560 per quintal due to slower supplies and robust demand.
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According to traders in Delhi, the heatwave earlier this year led to lower production of wheat impacting the domestic supplies of the agricultural produce.
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Jai Prakash Jindal of Delhi Lawrence Road Mandi said that the prices are set to spike further.
“Currently, wheat prices is at Rs 2,560 per quintal. It is likely to rise further to the level of Rs 2,600 in the coming days during this festive season,” he said.
The mandi prices were ruling at around Rs 2,150-Rs 2,175/quintal since the ban on wheat export was imposed on May 14.
Jindal said that production was at a lower side this year and the government did not stop the export at a right time.
“A lot of wheat was already exported by the time the government imposed the ban. It should have been done earlier,” he said.
Government data also showed a similar trend in the average retail prices of rice, wheat and atta.
As per the data of the Consumer Affairs Department, the average retail price of atta was Rs 36.13 per kg. Similarly, the average retail price of rice on Friday was Rs 38.2 per kg and that of wheat was Rs 31.
Traders said that while wheat prices have registered a rise of nearly 14-15 per cent, the rates of atta have gone up by nearly 18-19 per cent. Similarly, retail prices have also gone up by nearly 7-8 per cent in Delhi retail markets.
Traders said that the reasons for the increase in wheat prices include various factors like international demand-supply situation, rise in global commodity prices and the Russia-Ukraine war.
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