New Delhi: The Narendra Modi-led NDA government may not have taken any steps to curb the inflation but a marginal decline has been recorded in the wholesale prices of edible oil, pulse and grains in the past one month. India imports around 65 percent of edible oil out of its total consumption. With the new government taking charge at the Centre, the share market zoomed which has resulted in strengthening of rupee against USD. The weak dollar made it easier for the Indian companies to import more edible oils.
According to businessmen and traders, if rupee continues to strengthen, it will result in further decline of prices in the near future. The wholesale dealers fear that the Modi-led government may take strict action in the future to curb inflation. Considering the scenario, the grain prices are unlikely to increase. Thus the dealers are in no mood to hoard the goods.
The sugar prices have also been going down for the last two months, thanks to robust sugar cane harvest and its production. The farmers are expecting similar trend next year. Two months ago, the wholesale price of sugar was Rs 35 per kg which has now reduced to Rs 31.50 per kg.
Hemant Gupta, a wholesale seller of edible oil, said that the country annually consumes around 170 million tonne of cooking oil, out of which 10 lakh tonne is imported. Due to weak dollar, the edible oil prices declined by Rs 5 in the past month.
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