Wheat prices to go up 10-11 per cent | india | Hindustan Times
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Wheat prices to go up 10-11 per cent

india Updated: Sep 07, 2006 20:02 IST

Wheat prices are expected to rise by about 10 per cent in the next six months from the current level of Rs 967 per quintal due to tight supply situation, even though the overall foodgrain prices are likely to ease in the short term because of imports, according to Crisil Research.

"The Indian government plans to import 5.5 million tonnes by February 2007. Hence in the short term, prices are expected to ease," Crisil Research said in a report.

However, it said, average prices are expected to increase by 10-11 per cent in 2006-07, from the current level of Rs 967 per quintal, due to tight supply situation.

On pepper, the report said the global supply of the condiment is expected to decline in 2006-07, led by India and Vietnam, which would result in an increase in the prices in the domestic market.

Indian pepper prices are expected to rise from an annual average of Rs 66 per kg in 2005-06 to above Rs 75 per kg in 2006-07, it said.

Crisil Research also forecast soya oil prices to ease in the current season ending November. Soya oil prices had increased in the recent past due to supply concerns.

"Domestic prices moved above Rs 40,000 per tonne in June 2006. But prices are expected to ease as supply fears ease," it said, adding that the average price would be around Rs 37,000 per tonne for 2005-06 season.