RBI has kept its benchmark interest rate unchanged at 6.5% for more than a year, sticking to a relatively hawkish stance as inflation remains above its 4% target. With uncertainty over prices of vegetables and pulses, the RBI is unlikely to shift its stance anytime soon while expectations of a rate cut have been delayed to the end of the year.
Experts caution on prolonged high pulse prices until new crop in October, impacting food inflation. In April, pulse inflation was 16.8%, with tur at 31.4%, gram at 14.6%, and urad at 14.3%. Government eases import restrictions, including duty-free lentils imports, to address production challenges.
In Pune, tur dal prices rose by over 10% in less than a month despite an open import policy. The industry cites raw material shortages and hoarding as reasons for the hike.
In Pune, tur dal prices rose by over 10% in less than a month despite an open import policy. The industry cites raw material shortages and hoarding as reasons for the hike.