According to Suraj Agarwal, CEO, Tirupati Agri Trade, unseasonal and heavy rains in the months of August and September have affected the standing crop marginally, which may have an impact on production. However, the rise in prices is more on account of a strong demand from overseas markets.
Typically there is a dip in price when the new crop begins to arrive in the market; however, prices have increased in the last 15-20 days, sources said. Pusa 1509 has moved up by nearly 19 per cent from ₹2,600 a quintal and Pusa 1121 by close to 9 per cent from ₹3,400 a quintal just about 20 days ago.
“Production is almost similar to last year; the price rise is more due to speculation of a possible dip in production,” said Gurnam Arora, Joint Managing Director, Kohinoor Foods.