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Commodity Mid Session News

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(29 May 2025, 14:55)

Agri Buzz: Cereal prices stay firm in FY25, Spices prices correct on elevated production

The Reserve Bank of India (RBI) has stated in its latest annual report that inflation in cereals and products firm at 7.2 per cent during 2024-25, albeit lower than 10.7 per cent in the previous year. Within cereals, inflation in rice prices, after remaining in double-digits for 22 months, moderated to 9.6 per cent in August 2024 and further to 4.9 per cent in March 2025. The correction was largely on account of higher production in 2024-25 (6.7 per cent as per 2nd AE over 2023-24) as well as supply management measures by the government. RBI noted that inflation in prices of spices corrected to an average of (-) 3.3 per cent during 2024-25 as against 18.9 per cent a year ago, driven primarily by fall in prices of jeera (cumin) and dry chillies, on account of higher production of spices in 2023-24 (5.5 per cent over 2022-23).
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