Spice Price Hike: The heat of spices increased, garlic crossed Rs 400 per kg, know why the prices are increasing
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Spice Price Hike: Rising inflation in the food section remains a cause of great concern for the central government. At the same time, Reserve Bank of India has also said regarding the reduction in inflation that the bank is not happy about the immediate reduction in inflation. Here, many steps are also being taken by the government to control inflation. However, even after this, the prices of spices are increasing every day. Garlic has become the latest victim of inflation of basic commodities. Prices have almost doubled in the last few days. In some areas, garlic rates have reached Rs 400 per kg. Which is quite high due to shortage in supply. Along with this, there has also been a rise in the prices of cumin and coriander. In futures trading on Monday, the price of coriander increased by Rs 124 to Rs 7,234 per quintal. On NCDEX, the price of coriander for delivery in December increased by Rs 124 or 1.71 percent to Rs 7,234 per quintal. It was traded for 7,205 lots. Market analysts said the rise in coriander futures prices was mainly due to the firm trend in the spot market and limited supply from producing areas.
Garlic price doubled
Garlic which is one of the most used spices across India has seen its price double in just a few days. Now in some retail markets it is being sold at ₹300 to ₹400 per kg. Prices are expected to remain high till the end of the year. According to the Economic Times report, a big increase has also been seen in the wholesale prices of garlic, which is being sold at ₹130-140 in the wholesale markets. Meanwhile, high quality garlic is being sold in bulk at Rs 220-250 per kg.
Why did the price of garlic double?
After onion, garlic is the spice whose price has doubled in less than a week. The reason behind the high prices is the dwindling supply of garlic across the country, as the crop was damaged due to extreme weather conditions. A large quantity of garlic crop was destroyed due to unseasonal rains caused by Cyclone Michong in some parts of India. Due to this, there has been a huge shortage of spices in the market, due to which the prices have doubled. It is expected that prices will continue to rise across the country until the new produce hits the market, which could happen by the end of the month. Generally, garlic prices increase during the winter season due to low production and supply. There has been an unexpected increase in the prices of garlic after the supply of onion decreased due to high prices and short supply in the wholesale markets. Despite several steps being taken by the Center to reduce prices, the rates remained stable at ₹300-400 in retail and around ₹200 in wholesale. The reason behind the sudden increase in prices of essential fruits and vegetables is the weather conditions in some parts of India, due to which crop yields have reduced.
Government imposed ban on onion and sugarcane juice
To control the rising prices of onion, the central government has banned its export till March 31. In the notification issued by the Directorate General of Foreign Trade (DGFT), it has been said that the policy of export of onion has been changed from free to restricted category till March 31, 2024. Along with this, sugar mills and distilleries have been barred from using sugarcane juice or syrup for ethanol production for 2023-24. However, the Food Ministry has clarified in a letter to the Managing Directors (MDs) and Chief Executive Officers (CEOs) of all sugar mills and distilleries that ethanol from B-heavy molasses will continue to be supplied to oil marketing companies. The Food Ministry said in the letter that in exercise of the powers conferred under Sections 4 and 5 of the Sugar (Control) Order 1966, all sugar mills and distilleries are directed to implement the ESY (Ethanol Supply Year) 2023-24 with immediate effect. Do not use sugarcane juice/sugar juice for ethanol.
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