Pulses, pulses, edible oil will remain on demand – pressure of supply imbalance: Reserve Bank – pulses oil edible oil will remain under demand supply imbalance pressure reserve bank

Pulses, pulses, edible oil will remain on demand – pressure of supply imbalance: Reserve Bank – pulses oil edible oil will remain under demand supply imbalance pressure reserve bank

Mumbai, May 27 (Language) Due to demand-supply imbalance, food items like pulses and edible oil may remain under pressure, however, given the bumper yields of 2020-21, grain prices may moderate in the coming years. is. The Reserve Bank of India (RBI) said this in its annual report released on Thursday.

The Reserve Bank said that the impact of the second wave of pandemic may also be seen in inflation in the future due to increase in infection cases in March. With this, the central bank believes that the price of crude oil will continue to fluctuate in the near future.

The report noted that the difference between inflation based on wholesale price index (WPI) and consumer price index (CPI) reflects the inflationary behavior of food items.

It added that consumer price index (CPI) -based food inflation rose after a nationwide ‘lockdown’ last year, while inflation in the products included in the wholesale price index (WPI) fell during this period. “This reflects supply chain disruptions and the role of opportunistic pricing.”

The Reserve Bank also stated that the increase in retail prices in the period after lockdown was much higher than the general increase in food prices in the summer season.

The RBI report states that substantial differences between wholesale and retail inflation during the year point to persistent supply constraints and higher retail margins. This has led to better supply management of goods and materials.

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It said, “Due to imbalance in demand and supply, pressure from food items such as pulses and edible oils is likely to remain, while grain prices will soften in the year 2020-21 with bumpy yields Can.

Regarding the price of crude oil, the report said that prices have started rising in the hope of increasing demand worldwide, while on the other hand, members of the Organization of Oil Exporting Countries (OPEC) and their partners continue to cut the production of crude oil. is kept.

The Reserve Bank said that crude oil prices are expected to remain volatile in the near future.

The report noted, “The pandemic generally significantly reduces market competition, with the number of active Kovid-19 cases increasing since the beginning of the second wave of pandemics from March 2021, as well as preventive measures. The impact on the supply chain can further impact inflation. ”

The Reserve Bank said that the main inflation averaged 6.2 percent during the year 2020-21, which is 1.4 percentage points higher than the previous year. On the other hand, WPI inflation remained weak during 2020-21.

WPI-based inflation came down to 1.3 percent in 2020-21, from 1.7 percent in 2019-20.

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