Crisil raises concerns over inflation in pulses due to changing weather patterns in India

This year, assuming that pulses inflation continues to display the cobweb phenomena (albeit less pronounced), the next peak could be 6 to 7 months away, according to Crisil Ratings. Furthermore, truant weather patterns last year caused some damage to production, which could have some impact on prices. The rating agency said that this year too, policymakers will have to keep their eyes peeled on monsoon behavior and its implication on prices, and accordingly take measures to correct price pressure. This year with delayed and uneven rains, and impacting pulses sowing, pressure on prices could be felt. But, continued government intervention via price stabilization schemes could ensure that the next peak remains less intense. In a recent move, the government announced the removal of the 40% procurement ceiling for key pulses (tur, urad and masur) which will allow farmers to sell any amount of their produce. This should encourage farmers and help increase the sown area in the cropping ...