Due to the increase in the minimum support price (MSP) of the crops, the pace of commodity has begun. Traders and analysts said that the price of maize, rice, bajra, moong, tur, cotton and soyabean has increased in particular. According to them, prices of pulses and cotton may continue fast.
According to Sunil Kumar Sinha, Principal Economist, India Ratings and Research (Fitch Group) said, "It has been observed that the minimum price for the crop is fixed by MSP and the price of the wholesale market remains above that." He said how much the market price will remain with the MSP, with the government intervention, it will also depend on how the demand and supply off.
In the last one week, the price of maize has climbed up to 1210Rs per quintal in spot market and reached Rs 1260. Angel commodities broking deputy vice president-commodities research, Anuj Gupta, says that the price of rice has increased from Rs 6,100 per quintal to ~ Rs 6,300 per quintal. The price of millet in the physical market has also increased from ~ Rs 1210 to ~ Rs 1260 per quintal.
The MSP of Moong has been increased by 25% in pulses. In this, in the wholesale market of Indore it has increased by ~ 3 Rs per kg in the last one week to ~ 53-54 Rs per kg. Traders say that the price of tur dal has increased from ~ 36 Rs per kg to ~ 38 Rs per kg. Suresh Aggarwal, president of Indore All India Dal Mills Association, said, "Prices can remain high."
Sunil said that for the year 2017-18, the Moong MSP of ~ 5,575 Rs quintal has been fixed. However, its average price in wholesale market is running at Rs 6,658 per quintal. He said, "Now MSP has been increased to 6,975Rs quintal for 2018-19. Now, the price of mung beans can cross this level in the wholesale market. "
The sale price of cotton has increased from 4600 Rs to 4800 Rs per quintal without selling the market in the spot market after the announcement to increase the MSP. He said, 'He has stopped selling cotton in the hope of getting high prices. Due to heavy rains in Maharashtra, there has been negative impact on supply. However, buyers are busy shopping for their stocks and inventory. '
According to Deviesh Jain, chairman of Soybean Processors Association of India (SOPA), that the increase in MSP has led to soybean prices too. He said, "This has not had any impact on the sales and demand of edible oils and poultry feed. Industry purchases are getting higher than the June quarter. ' He said that the inquiry inquiries have been started for him for the October delivery.