Bumper Harvests and Policy Measures: A New Era for India's Food Prices

The latest Reserve Bank bulletin reveals that average mandi prices for major food crops, apart from wheat, are currently below the minimum support price (MSP). This trend, resulting from a bumper harvest of both kharif and rabi crops, is viewed positively for the nation's food security.

According to high-frequency food price data up to May 19, there's a broad moderation in prices of cereals and pulses. However, prices of edible oils like soybean, sunflower, and mustard continue to climb, contrasting with stable palm and groundnut oil prices. Furthermore, onion prices are correcting downward, whereas potato and tomato prices are on the rise.

Rajasthan and Madhya Pradesh have announced bonuses over the MSP for wheat. The article adds that summer crop sowing is nearly complete, with projected above-normal monsoon rainfall enhancing prospects for the kharif season.

(With inputs from agencies.)