The Hindu : Andhra Pradesh / Hyderabad News : ‘Prices of farm products to go up’

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Andhra Pradesh

Andhra Pradesh - Hyderabad

‘Prices of farm products to go up’

Special Correspondent

10 p.c. average rate of price rise likely to continue, says Plan panel member

Prices of pulses, vegetables and fruits may peak as they are in short supply
‘Prices of rice and wheat to be comfortable as the country has enough stocks’

HYDERABAD: Planning Commission member Abhijet Sen has expected prices of primary agricultural commodities to go up due to large inflationary trends caused by adverse seasonal conditions in the last few months.

Speaking to reporters on the sidelines of a national conference on agricultural marketing here on Thursday, Mr. Sen said the average rate of increase in the prices of agricultural commodities for sometime had been around 10 per cent. The same trend could continue in the coming months even though the worst was over.

Mr. Sen also expected the prices of pulses, vegetables and fruits to peak as they were in short supply. “There will be speculation in the market for these products. The ability of the governments to manage their market will come under sharp focus.” However, the prices of rice and wheat would be comfortable because the country had enough stocks, he added.

Adverse season

He regretted that the management of prices of primary agricultural commodities was disturbed due to general elections though the first signs of adverse season ahead were available in June.

Quoting the Agriculture Ministry, he said there would be 12 to 13 per cent decline in agricultural output across the country this year.

The paddy production would be lower by 15 million tonnes and other food grains by 21 one million tonnes. Except cotton, there would be lower production in all principal crops.

Inaugurating the conference earlier, Mr. Sen said India was insulated by shocks of massive increase and sharp fall subsequently in commodity prices of global markets in 2007 and 2008. The developments had great impact all over the world, particularly developing and food importing countries.

India’s constraint

Former Indian Ambassador to Kazakhstan S.R. Hashim said India’s inexperience in marketing and finance was a constraint to development of its agriculture beyond a point. Director of Central Research Institute for Dryland Agriculture B. Venkateswarlu said research at the institute showed that jatropha was not economically viable as a bio-fuel because its harvesting was labour driven.

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