It is expected that food inflation, which was continuously reached before Diwali is established in the coming months supported by a high base effect last year, healthy crop production was warned by normal rains, and a wide groundwater that supports the rabi harvest. However, despite a marginal reduction, some pressures on cooking oil inflation will continue to comply with high global prices and a weaker rupee that could affect imports, industry leaders and analysts said.
Retail inflation had accelerated to 4.48% in October 4.35% in September, while wholesale inflation had increased to a maximum of five months of 12.54% from 10.66% in September.
Before Diwali, the prices of almost all food products were moving upwards. Dipti Deshpande, Crisil’s main economist said: “As in October, cereal prices were slightly for ~ 1% in the year, while the prices of other food groups such as pulses and oilseed were directed north significantly by 17% and 30% respectively “.
However, post-diwali, consumers tend to get help from high food inflation. “We hope that food inflation remains soft in the coming months supported by high basic effects last year, healthy plant production is supported by normal rain, and groundwater that is enough to support rabbi plants,” Deshpande said.
Angshu Mallick, CEO, Adani Wilmar said: “Edible oil prices were at their top point during the first week of October. Thereafter, markets have seen a gradual reduction after tax cut. Prices have been corrected in Almost 10% of their main levels during the last month, what the consumer will begin to feel at a retail level over the next 10 to 15 days. “
“The subsequent demand for Diwali of cooking oils has slowed down. A rally on global edible oil prices seems doubtful since there is a lot of resistance. The general condition of domestic crops is good, which must maintain stable prices down “Sudhakar Desai, president, association of producers of Indian vegetable oils.