In the case of edible oil, the decline in wholesale prices of soy and sunflower oils is just 1. 5-2% so far. Officials are, however, drawing comfort that the rising trend has been arrested and there is scope for a further reduction, especially when finance and commerce & industry ministries are monitoring it. While the duty cuts for raw material and inputs used by the plastics industry have not shown an impact so far, the industry has assured the government that the impact will be visible over a few weeks. Economists said the Center’s measures have helped calm prices in some segments.
“Government’s supply-side interventions seem to have helped pulses and edible oils as import duties have been cut on both these commodities over the past year. Government had also secured agreements for imports of pulses from multiple countries last year, which together with healthy production, has been bringing down pulses inflation for the past 11 months, ”said DK Joshi, chief economist at ratings agency Crisil.
Carbohydrates have been recording higher inflation than certain protein items since the past few months. Inflation in cereals was 5. 3% in May, compared with -0. 4% for pulses and -4. 6% for eggs.