Commodity prices skyrocket
Maize prices moved up another 4% this week to Rs.7620 per Mt at the market yard. Market reports indicate availability of smaller quantities of maize. Prices are almost 9% higher than last year at the same time. Last year during this period the Mandi prices were under Rs.7000 per MT. Delivery prices in almost all parts of the country have reached Rs.10000 per MT. The high cost is mostly due to increased cost of transportation.
Pearl Millet prices inched another 2% upward to Rs.7090 per MT at the market yard. The prices are 8.6% higher than last year. Against maize the prices are lower by about 7.5% and it does make sense to use pearl millet in layer and broiler rations to reduce the cost of production of eggs and meat respectively.
Sorghum prices have also moved by about 4.5% and are at Rs.10300 per MT. Prices are 6.4% higher than last year prices. Against maize, the prices are higher by 26% on an average. There are some stocks available in the range of Rs.6000 – 7000 per MT at the market yard at some locations, but these may not be suitable for feeding poultry.
Barley prices have also moved up further to Rs.11190 per MT, a jump of 1.6%. Over last year barley prices are up by 41%. It just might not be possible for the end users for meet ends meet.
Corn on CBOT also closed higher at $256 per MT for July delivery. Prices were also much higher for Sept delivery, which closed at $261 per MT.
The rate of inflation touched 8.24% for the week ending May 24, 2008, which is highest in 199 weeks. With the prices of Diesel increased by Rs.3 per liter, the transport cost for all commodities will be higher, which is likely to increase the inflation further.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
Maize prices moved up another 4% this week to Rs.7620 per Mt at the market yard. Market reports indicate availability of smaller quantities of maize. Prices are almost 9% higher than last year at the same time. Last year during this period the Mandi prices were under Rs.7000 per MT. Delivery prices in almost all parts of the country have reached Rs.10000 per MT. The high cost is mostly due to increased cost of transportation.
Pearl Millet prices inched another 2% upward to Rs.7090 per MT at the market yard. The prices are 8.6% higher than last year. Against maize the prices are lower by about 7.5% and it does make sense to use pearl millet in layer and broiler rations to reduce the cost of production of eggs and meat respectively.
Sorghum prices have also moved by about 4.5% and are at Rs.10300 per MT. Prices are 6.4% higher than last year prices. Against maize, the prices are higher by 26% on an average. There are some stocks available in the range of Rs.6000 – 7000 per MT at the market yard at some locations, but these may not be suitable for feeding poultry.
Barley prices have also moved up further to Rs.11190 per MT, a jump of 1.6%. Over last year barley prices are up by 41%. It just might not be possible for the end users for meet ends meet.
Corn on CBOT also closed higher at $256 per MT for July delivery. Prices were also much higher for Sept delivery, which closed at $261 per MT.
The rate of inflation touched 8.24% for the week ending May 24, 2008, which is highest in 199 weeks. With the prices of Diesel increased by Rs.3 per liter, the transport cost for all commodities will be higher, which is likely to increase the inflation further.
Amit Sachdev
India Representative
U S Grains Council
bluecross303@gmail.com
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