Many countries are addicted to Indian cereals and spices: increase in exports

- Commodity Current: Jayavadan Gandhi

Rising prices of petrol-diesel as well as oilseeds in the country these days have become a headache for the people. The government's policy has been sharply criticized as petrol and diesel prices have started as soon as the elections are over. Petroleum products have risen by Rs 6 per liter in the last three weeks. Even globally, crude oil producers in the so-called Gulf countries of West Asia are experiencing extreme heat these days. So in such a country where there is a shortage of electricity to run air conditioners, the consumption of crude oil as an alternative has increased a lot. Even in countries like Saudi Arabia, crude oil is being used to generate electricity at a discount of more than 5 per cent of production, so that global crude oil prices have crossed ૭૨ 6 per barrel. As a result, petrol-diesel prices have been steadily rising locally. If this situation continues now, crude oil prices are likely to cross ૭૫ 8. And at the local level, petrol and diesel prices are likely to cross Rs 100 per liter. Consumption of crude oil is also on the rise in many countries, including India, in parallel with the opening up of lockdowns. The impact of the agreement to cut production by oil-producing countries has also weighed on inflation, with a bullish sentiment in the crude oil market supporting inflation.

The government has breathed a sigh of relief as agriculture in the country's agricultural producing states has been affected by lockdowns as well as corona. The agribusiness has increased by 20-21 this year over the last three years. Agricultural exports have increased by more than 15 per cent. Exports of cereals like wheat, rice, millet from India have increased dramatically. India has doubled its exports to Indonesia this year, mostly to the US, China, Bangladesh, UAE, Vietnam, Saudi Arabia, Indonesia, Nepal, Iran and Malaysia. Since then exports to Bangladesh and Nepal have been significant. In addition, exports have started to some new countries. Exports from cereals to vegetables have started in small countries like Brazil, Timor and Porta. For example, exports of fresh vegetables from Varasani and items including mango and rice from Chandrauli have started. This is the first time that wheat has been exported to countries like Indonesia and Bhutan and the demand for health items like millet, turmeric and ginger is increasing significantly in countries like Sudan, Poland and Bolivia. Which is proving that India is moving fast towards self-reliance.

However, the country still has to rely on foreigners for things like beans and oilseeds. The government has focused on increasing the production of pulses and oilseeds. As part of its exercise, it has recently tried to appease farmers by raising support prices.

The government has also given green signal to the import of pulses to control the price of pulses. The government has hiked the support prices of some agricultural commodities, including urad, tur, mug, soybean, for kharif sowing by 5-7 per cent for the year 2021-22.

However, farmers are not happy with the rise in support prices. According to farmers, the recent rise in support prices against rising petrol-diesel prices, seeds, medicines, fertilizers as well as labor prices is normal. Inflation and support prices are not rational with the market. Support prices often remain modest. The prices of many agricultural commodities in the market have been lower than the support prices in the past. There have been instances in the past where government purchases are often not even in line with support prices.

Soybean and groundnut cultivation is likely to increase in the current kharif season. The government distributes seed kits in many states to increase production of pulses and oilseeds. States including Gujarat, Madhya Pradesh, Maharashtra are witnessing high attractiveness due to high prices of soybean and groundnut. On an average, planting is expected to increase by 3 to 4 per cent.

Meanwhile, the income from various agricultural commodities in the state's agricultural markets has been steadily increasing. In Unjha market, there is no significant fluctuation in prices if the same amount is traded against the average income of 8 to 10 thousand sacks of sorghum, fennel and cumin.