Soft commodities are surging in the global markets and more so in the Indian markets because of the short squeeze in the edible oil space. Soybean and cotton prices are at all-time high.
To discuss this in detail, CNBC-TV18 spoke with Siraj Hussain, Former Agriculture Secretary, Government of India.
With regards to sowing, he said in the last two weeks the situation has improved. Now the numbers are good and comparable to the averages although slightly lower than last year. “I only worried in case of maize because the area is lower and the prices are moving on the higher side. Otherwise, other numbers are fine,” he said.
Talking about price rice in edible oil, “Both in case of edible oil and pulses the prices will moderate as they have in the last week. If one were to see week by week data, the prices have moderated for pulses and going forward as monsoon is turning out to be good in month of July and June, I see prices moderating.”
He further said, the government has taken number of steps to moderate the import duty, bring in more pulses from abroad and they are now in control of the situation through the Essential Commodities Act which was modified last year, so we should be fine. “I do not see inflation touching double-digit,” he added.
According to him, even food inflation is likely to remain under control. The government is also releasing food grains under the Pradhan Mantri Garib Kalyan Yojana. In case of wheat and rice inflation hasn’t been there because of stocks although vegetable inflation was seen in July but that too will moderate.
For the entire interview, watch video