It is early days yet, and the monsoon may yet flag, but as fears of a deficient monsoon retreat, prices of key commodities that had started rising over the past few weeks have begun to moderate, reports fe Bureau in New Delhi. The price of chana, for instance, had risen from R3,625 per quintal on April 1 to R3,935 on April 22 and R4,700 on June 2 — on April 22, the Met had forecast a -7% rainfall over the long period average and raised this to a 12% deficit on June 2. However, with rainfall exceeding the LPA by 10% up to June 18 and 24% by June 24, the price of chana collapsed to R4,350 on June 24.
In the case of guarseed, where the variation has been the highest, prices rose from Rs 3,814 per quintal on April 1 to Rs 4,850 on April 22 and Rs 5,019 on June 2 before slipping to Rs 4,352 on June 24, a fall of 13% in the spot market and an even higher 17% in the futures market.
Central India — including the oilseeds-producing states of Madhya Pradesh, Gujarat and Maharashtra — witnessed a 29% rainfall deficit during the June 1-11 period, but this turned into a surplus of 52% over the LPA by June 24. The deficit in the northwestern regions, which are projected to receive rainfall at just 85% of the LPA, has been to the tune of 5% until Wednesday.