SPI still 11.41 percent higher than last year

For the past three weeks of September the year-on-year weekly Sensitive Price Index (SPI) has shown downward trend. Still it is 11.41 percent higher for the week ending on September 23 as compared to the corresponding week of last year. This is endorsed by the fact that of the 53 essential items 27 items of daily necessity showed no change in price, while 11 items posted some decrease and 15 items registered increase.
The downward trend is indicated thus during the month: on September 2, the year-on-year SPI was at 12.74, followed by 12.35 on September 9; and 12 percent on September 16.
The weekly document showed that the decline started from August 19 when it fell to 12.95 percent from the previous week's highest SPI increase of over 13 percent in the week ending on August 19.
The weekly review indicated that there was no change in prices of mutton, beef, fresh milk and curd, vegetable ghee, petrol, diesel kerosene. However, the last three items are dearer now over last year. The rise is petrol 17.66 percent, diesel 12.18 percent, kerosene 16.75 percent.
All indications are that these would rise when the government unfreezes POL prices according to international prices. Crude oil is around 45 to 48 dollars per barrel and the government has frozen the domestic prices in relation to 37 dollars a barrel.
Irri rice is 21 percent dearer than a year ago; beef price is 32 percent up; mutton still higher by 30 percent curd and milk about 11 percent higher.
There is no possibility that these would take a downturn.
LPG prices are still moving up from Rs 465 to Rs 383 per cylinder despite government's new directive to keep a check on its price. It is now over 35 percent dearer than last year. The rise in wheat over previous year is 24 percent; firewood 16.21 percent; tomatoes 18 percent; onions 43 percent; potatoes 65 percent; wheat flour 21 percent; egg 16 percent.
Fertiliser prices showed a mixed trend during the week but as compared to the corresponding week of September 2003 all kinds of fertiliser are higher by 8.93 percent to 31 percent. So this input will have its impact on the crop prices.