Top Section
Explore Business Standard
Don’t miss the latest developments in business and finance.
A 6-7 million tonnes shortfall in rice production due to a fall in paddy sowing area is likely to keep rice prices at elevated levels, adding to the inflationary pressure that the slowing economy is already grappling with. Elevated food prices, including that of cereals, had led to retail inflation reversing a three-month declining trend, to touch 7 per cent in August. Similarly, the wholesale price inflation, which declined to 11-month low, also showed price pressures from cereals resulting from wheat output being impacted by severe heat waves in some parts of the country. In addition to this, expectation of a lower paddy output - conservative by government estimates and higher if outside experts are to be believed - will keep inflationary expectations higher, experts and analysts believe. Erratic June-September rainfall and delayed withdrawal of South-West monsoon rains have added to concerns over paddy crop. India's rice production during the 2021-22 crop year, ended June, stoo