SUPPLY FEARS MOUNT
Some analysts, however, argue that speculation rather than actual supply shortages is driving prices higher.
“This news came to be known widely, everybody is anticipating El-Nino and large rainfall deficit. Everybody is anticipating there will be shortage of agricultural production,” said climate policy analyst Soumya Dutta.
“So the hoarders have bought and are hoarding and are actually utilising this (situation). Otherwise, there is absolutely no reason why rice prices at this point of time should go up.
“Because we have enough buffer stock of paddy in the FCI (Food Corporation of India) godowns and it should have been released. The government should have released it.’
The Karnataka government has denied any hoarding in the state, saying it is in talks with traders and farmers to formulate measures to curb rising prices.
Other southern states have initiated measures, such as the distribution of selected grain varieties at subsidised rates, to ease the burden on consumers.
With below-normal rainfall forecast for the rest of the monsoon season, experts are urging governments to act quickly by supporting farmers with free or subsidised seeds and fertilisers while ensuring adequate rice supplies to prevent further price increases.
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