Wheat flour’s all-India average retail price stood at Rs 32.78 per kg on Saturday, 9.15 per cent higher than the price (Rs 30.03 per kg) a year ago, according to data reported by the state civil supplies departments to the Union Ministry of Consumer Affairs, Food and Public Distribution.
Among the four metro cities, the average wheat flour retail price was the highest in Mumbai at Rs 49 per kg, followed by Chennai (Rs 34 per kg), Kolkata (Rs 29 per kg) and Delhi (Rs 27 per kg).
Also, wheat buying by the milling industry from the FCI can vary from negligible amounts to about 7-8 million tonnes in a year, depending on the position of wheat in the market.
During 2021-22, the wheat processing industry procured seven million tonnes of the foodgrain from the government. This year, the industry will have to buy 100 per cent wheat from the open market if the government does not declare the continuation of the OMSS policy
Meanwhile, soaps, shampoo, biscuits and noodles are facing price hike pressures due to Indonesia’s ban on palm oil export. Palm oil is used as a raw material for various industries to manufacture products ranging from soaps, shampoos, noodles and biscuits to chocolates. The shortage in the supply of palm oil will push its prices, which, in turn, will raise the input cost of these products and hence prices.
India is the world’s largest importer of edible oils and is the biggest importer of palm oil and soyabean oil. India imports over 13.5 million tonnes of edible oil every year. Out of this, 8-8.5 million tonnes (around 63 per cent) is palm oil. Now, nearly 45 per cent comes from Indonesia and the remaining from neighbouring Malaysia. India imports roughly 4 million tonnes of palm oil from Indonesia each year.
Apart from this, rising input costs due to high food inflation and fuel prices are also forcing quick-service restaurants such as Dominos, bars and cafes to increase prices by up to 15 per cent. Industry executives have earlier said their raw material costs have increased by up to 30 per cent in the past three months.
The inflation in March jumped mainly due to a rise in food items. The inflation in the food basket during the month stood at 7.68 per cent, higher as compared with 5.85 per cent in February.
Core inflation, which excludes food and fuel components, also rose to a 10-month high of 6.29 per cent in March. Food inflation rose to 7.68 per cent in March, against 5.85 per cent in the preceding month. The spike in the food basket was due to a sharp rise in prices of oils and fats, which climbed 18.79 per cent year-on-year in March.