Cereal prices rise due to low stocks, high demand amid patchy rains

In case of paddy, patchy monsoon since the start of June over the main paddy growing regions of UP, Bihar, Jharkhand, West Bengal and Odisha has pulled down acreage

Ahead of its meeting, the Reserve Bank of India (RBI) can take some solace from the softening food commodity prices. However, the events surrounding the last few weeks show that the fall may not be uniform across all commodities, and cereals like wheat and rice could be the outliers.

A Reuters report said that local wheat prices jumped to a record Rs 23,547 per tonne on Wednesday. That is a 12 per cent rise from the recent lows that followed the government’s surprise ban on exports on May 14.

The spike was due to rising demand amid dwindling supply of