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Fluctuations In Commodity Market Due To Delayed Monsoons

Delay in the monsoons has started creating the fluctuations in the commodity market. Everyone is praying for the monsoons to arrive soon to manage the production at the forecasted and required levels. Any further delay will heavily result in the drop in the outputs. Already the market have shown that with the slight delay, dropping production and increasing demands, the prices of the crops and other monsoon based commodities have gone up. Though drizzling in some parts is showing the good signs but the required levels have not been met yet. The various commodities have shown the fluctuations are below:


Initially this week, S-grade sugar has shown a price rise of around Rs 5-10 per quintal whereas M-grade sugar was almost constant. Only few mills were able to sell sugar in market due to decreasing production. Also, it is expected that the demand will further increase in July because of Ramzan.

commodity market

[image credit: Flickr]


Here also delay in monsoon has shown the price rise in mustard oil. The trend was bullish due to rising demands by the manufacturers. Mustard oil have raised by around Rs 20. But if we look towards the futures trading of mustard, we can see downgrading in both both July and August contracts of mustard seeds.


Cardamom is the spices which needs a very particular environment which includes high moisture. So, it grows well in an optimum amount of rain. The heavy rainfall will be harmful for the crop whereas less will not be sufficient. So, it is being highly effected. Cardamom is running at recordable high at around Rs 2000 per kg. There are high demands in the export market which has helped in creating the new high.


Almost all the pulses have shown lesser or more price rise due to increasing demand and delay in monsoon. Secondly, India import the pulses almost every year. Again, the depreciation in the rupee value has made the imports also costlier. We can see a 1.5% uptrend in the Chana.

Kharif Crops

Almost all the kharif crops like maize, wheat and rice have shown the price rise apart from the ones mentioned above. There is a possibility that the total rice production of the company may decrease by even 100 million tonne. Their sowing is also becoming difficult. Simultaneously, it is also effecting the prices of onion (in mandis) to rise which have been stable from the last few time.

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