October 5, 2012
Due to lower acreage in pulses, less availability of poultry feed like corn and rising input costs for fish breeding, India's protein basket comprising pulses, egg, meat and fish has become costlier by 15-20% over the last one month.
Eggs, the breakfast protein staple, have become expensive by 20% in the past few weeks. Current retail prices are at INR5 (US$0.1) a piece. A slight correction is expected in the coming days although prices are likely to stay high due to the onset of winter.
"Demand is low now due to the shraadh and navratras periods, which will lead to a slight fall in prices," said KV Subba Raju, chairman (Hyderabad zone), National Egg Coordination Committee and the all-India coordinator for egg prices. He said wholesale prices may fall to INR3 (US$0.06) a piece in the coming days from INR3.75 (US$0.07). "By October end or early November, prices will again increase," he added.
Prices of the common variety of fish have risen 15-20%. "The sudden surge in prices is due to the rising cost of inputs like fertilisers and fishmeal. This is acting as a major stumbling block for fish breeding and pushing down production. If production goes down, prices will go up as demand is rising," explained Utpal Bhowmik, head (riverine division), Central Inland Fisheries Research Institute.
Meat, the other protein-rich food on the Indian platter, too has shown a northward movement in prices. "This is primarily because demand is rising but not availability. Exports of buffalo meat and mutton have risen significantly.
Moreover, a diesel price hike has affected prices at the retail end because the transport cost of livestock has risen. For instance, goat meat which was selling at INR340-360 (US$6.6-7) per kilogramme has gone up to INR380 (US$7.4) per kilogramme over the last few days," said a Kolkatabased meat trader. Prices of pulses, which have gone up by INR2-3 (US$0.04-0.06) per kilogramme, are likely to go up further.
"Demand is picking up in the market and we expect prices to firm up by INR3 (US$0.06) to INR7 (US$0.14) a kilogramme across all dals by Diwali," said importer and stockist Sunil Baldewa of Siliguri Associate at Delhi' Naya Bazaar. On Wednesday, chana was quoted at INR4,375 (US$85) a quintal, moong INR5,200 (US$101) a quintal, urad INR3,700 (US$72) a quintal and tur INR3,900 (US$76) a quintal in Delhi market. Rising pulses prices can be attributed to lower kharif output. According to the first advance estimate, the kharif pulses output is estimated at 5.26 million tonne compared with 6.16 million tonne last year.
KC Bhartiya, chairman emeritus, India Pulses and Grain Association, said that with harvests going on, prices would remain stable. The harvesting of moong dal has started across Rajasthan, Maharashtra and north Karnataka. Prices were ruling at INR4,600 (US$89) to INR5,000 (US$97) a quintal in Nagaur and Merata mandis of Rajasthan. Urad harvesting has begun across Maharashtra with supplies picking up in major mandis of Udgiri, Latur and Akola.
In Madhya Pradesh, urad arrivals have just begun in Ashoknagar and Ganj Basoda mandis putting pressure on prices. Currently, new contracts for import of chana from Australia for November-December delivery are being quoted at US$750-760 a tonne which is 10% higher than the previous year.
