Among roti, kapda aur makaan, food inflation has kept the first one costly, with atta prices hitting a 10-year high in India this month. Next door in Pakistan, people clashed in the streets for flour, amid a shortage of wheat in the aftermath of devastating floods. But things may improve in India, as the government's move to sell three million tonnes of wheat on the open market, has triggered a 9 per cent crash in prices.
The dip in rates comes days ahead of an e-auction for wheat priced Rs 300 lower than base price per quintal. Wheat prices had remained high since stockists held back the grain, anticipating prices to rise further. The government also expects a further relaxation in prices, once wheat reaches flour mills.
As lower atta prices will help Indians cut down on household expenses, the government is also making up for a shortfall of tur dal, by importing a million tonnes of it in the next financial year. Amid inflation concerns, the El Nino weather condition is also expected to affect agricultural production in the country. At the same time high cost of feed and winter demand have further driven up egg prices in Maharashtra.
