Inflation will flare up; Wheat price has increased by as much as 8 percent and edible oil is now…

New Delhi : Just before the festive season, kitchen budgets can be strained again. in the domestic market last month wheatThe rate has increased by more than 8 percent. Edible oil prices are also likely to increase. Chicago wheat futures rose 5% in the previous session to a near two-month high on rising Black Sea supply risks. Attacks on Ukrainian ports have affected wheat exports.

Russia’s wheat exports have also been hampered by restrictions in the Sea of ​​Azov and the Kerch Strait. These constraints have increased the risk premium in the global wheat market. This increase in global wheat prices also affected the Indian market. During this period, the price of wheat in Indore market increased the most by 8.44%. Prices in major markets like Delhi, Kanpur and Kota have increased by an average of 3.5 to 4 per cent.

Potential impact on production

As rising temperatures, unseasonal rains and hail threaten yield and grain quality, wheat production forecasts are likely to be threatened by adverse weather conditions. Due to recent weather disruptions, traders have lowered their production forecast for the next rabi season to 114.0 crore tonnes from 113.5 crore tonnes. Despite production being higher than last year, the estimate is lower than initial expectations.

What are the reasons for the increase in the price of edible oil?

Soybean cultivation is likely to decrease by 6 percent this year. If there is no improvement in rainfall in the next 15 days, yield per hectare may also decline by 5 to 7 percent. Due to the lack of availability of palm oil in the global market and abundant stocks of mustard and soybeans in the domestic market, India reduced its imports. This will increase pressure on domestic reserves in the future. Demand from FMCG companies and stockists is slightly sluggish.

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