Finance Ministry Predicts Food Prices To Drop Post June
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As the citizens of the country struggle to cope with the hike in food prices, the Finance Ministry predicted that the costs of fuel and food products might dip post June this year. With an ‘above-normal’ monsoon predicted by the IMD as a forecast for this year, the Monthly Economic Review published by the ministry in March stated that higher rainfall might lead to a higher crop production.

In addition to this, the review elaborates further that, “Further easing of food prices is on the anvil as IMD has predicted above-normal rainfall during the monsoon season, which is likely to lead to higher production, assuming good spatial and temporal distribution of the rainfall.” With food inflation declining from a steep 8.7% to 8.5% from February to March, the higher prices of vegetables and pulses have been a point of concern for the government, which has since taken measures to curb the rising costs by imposing stock limits to prevent hoarding, having periodic open market releases and strengthening buffers of key food items.

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Moreover, the government has also been in negotiation talks with markets in Brazil and Argentina for long-term contracts for the import of pulses. While 20,000 tonnes of urad dal are expected to be imported from Brazil, final stage negotiations are underway with Argentina to import arhar dal. Contracts have also been drawn with Mozambique, Myanmar and Tanzania to import pulses as the CRISIL report suggests a drop in prices of vegetables post June onwards. For latest updates on food prices and more, visit Slurrp to know more.