JAIPURIA INSTITUTE OF MANAGEMENT, LUCKNOW

Analysis of Inflation Rate Of Cereals & Share In Inflation of Commodities That fall Under this Category

Sources:www.mospi.nic.in

INTRODUCTION
. Origin of Cereals. - Cereals, which is the term applied to the edible seeds of certain grains, originated with the civilization of man. When man lived in a savage state, he wandered about from place to place and depended for his food on hunting and fishing; but as he ceased his roaming and began to settle in regions that he found attractive, it was not long before he became aware of the possibilities of the ground about him and realized the advantage of tilling the soil as a means of procuring food. Indeed, the cultivation of the soil for the production of food may be considered as one of the first steps in his civilization. Among the foods he cultivated were grains, and from the earliest times to the present day they have been the main crop and have formed the chief food of people wherever it is possible to produce them. The grains belong to the family of grasses, and through cultivation their seeds, which store the nourishment for the growth of new plants, have been made to store a sufficient amount of nourishment to permit man to collect and use it as food. The name cereals was derived from the goddess Ceres, whom the Romans believed to be the protector of their crops and harvests. Numerous grains are produced, but only eight of these cereals are used extensively as food, namely, wheat, corn, oats, rice, barley, rye, buckwheat, and millet.

Cereal Products. - Besides the cereals already mentioned, a number of products of

cereals are extensively used in cookery, chief among them being flower, corn starch, and other starches. Although every housewife should possess knowledge of the uses of each of these, instruction in them is not given until later. This Section includes particularly the study of grains - whole, cracked, flaked, and those made into grits or meal - and the use and the serving of them, as well as ready-to-eat cereals, which are commonly referred to as breakfast foods. The only additional foods to which attention is given at this time are macaroni, spaghetti, and foods of a similar nature, for as these are made from wheat they are truly cereal products. In their preparation for the table, the rules that govern the other cereal foods apply also in a large measure to them.

Composition of Cereals
5. The composition of all cereals is similar, yet each one has its distinguishing feature. While all the five food substances - water, mineral matter, protein, fat, and carbohydrate are to be found in cereals, they occur in different quantities in the various kinds. Some contain large quantities of protein and others practically none, and while certain ones have considerable fat others possess comparatively small quantities. A characteristic of all cereals, however, is that they contain a large amount of carbohydrate and a small amount of water. It is well to remember, though, that while the food substances of cereals are found in sufficient quantities to sustain life, they will not permit a person to live for long periods of time exclusively on this form of food.

Sources:www.mospi.nic.in

Basic reasons for fluctuation in prices of cereals

WHEAT: Wheat prices have remained firm on the back of low stocks and high international prices. On a year-on-year basis, wheat prices have increased by 10% from August 2009 to August 2010. The recent increase in the price of wheat is clearly because of demand exceeding supply a situation arising out of lower market arrivals, lower procurement, decline in the buffer stock below the norm. Wheat, the staple used to make bread, pasta, chapatti and much else, epitomizes the trend. JOWAR: There has been decline in jowar production and this is accounted by decline in both areas under cultivation and yield. Except for Mysore where there has been increase in area as well as yield , output has declined in all the major jowar producing states particularly Maharashtra. BAJRA: High rate of growth in production of bajra . this is of the fact that bajra is predominantly a rainfed crop. Substantial increase in productivity has been made possible by the success of the hybrid bajra programme. Rajasthan however remains largely unaffected because it has exceptionally favourable season, the average yield in this state has registered only a marginal increase. MAIZE: 1)Non-availability of regular supply of required quantity of water in some districts. 2) Availability of maize in only 1 season. 3) Poor rail connectivity from major growing states like HIMANCHAL PRADESH 4) High transportation cost both of raw material and finished goods due to hilly terrain. 5) Consumption of maize as staple food by local populationand limited preference for processed products.

Sources:www.mospi.nic.in

BARLEY: During the 5 year plan area under barley cultivation has reduced by 8.8% , however there is increase in productivity by 14.6% thereby indicating a substantial improvement in production. This is perhaps attributable to the fact that 50% of the area under the crop is irrigated. Small proportion of the total area in the case of jowar and bajra is under irrigation , vagaries of weather have a large impact on output.

RICE: Weather: Role of weather in rice production is immense. Temperature, rainfall and soil moisture are the important parameters that determine the crop condition. Further, natural calamities can also affect crops. Markets keep watch of these developments. Minimum Support Price: Changes in the minimum support prices (MSP) by the government also have immense impact on the price of rice. Government policies: Exchange rates, Fiscal policies, Export incentives and export promotion also influence price. Substitute Product: Availability of substitute products at cheaper rate may lead to weakness in demand. This situation happens especially when the main products price tends to become higher. Consumption: Rice consumption depends on two factors - population and income. Lets take for example Asia. Rice is the staple food of Asia. Low-income groups consume more rice according to the per capita income increase. But as the income increases, there arrives a point when the consumption starts to dip. Income growth and reduction in population result in a low consumption of rice. Seasonal cycles: Seasonal cycles are present in rice cultivation. Price tends to be lower as harvesting progresses and produce starts coming into the market. At the time of sowing and before harvesting price tends to rise in view of tight supply situation. Demand: Import demands as well as domestic demand. Breakthrough in the technology may increase the productivity and would lead to more supply. This may bring some softness in the price.

SOURCES: GOOGLE.COM

Sources:www.mospi.nic.in

RATE 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 150.00 200.00

RATE
RATE

50.00

0.00

100.00

-100.00

-50.00

0.00

100.00

150.00

-50.00 50.00

Sources:www.mospi.nic.in
MONTH

2008

INFLATION RATE OF CEREALS

SHARE IN INFLATION(W HEAT)

SHARE IN INFLATION(MAIZE)

INFLATION RATE OF CEREALS

SHARE IN INFLATION(W HEAT)

SHARE IN INFLATION(MAIZE)

5
MONTH

MONTH

IN DX 01 20 08 IN DX 02 20 08 IN DX 03 20 08 IN DX 04 20 08 IN DX 05 20 08 IN DX 06 20 08 IN DX 07 20 08 IN DX 08 20 08 IN DX 09 20 08 IN DX 10 20 08 IN DX 11 20 08 IN DX 12 20 08

IN DX 01 20 08 IN DX 02 20 08 IN DX 03 20 08 IN DX 04 20 08 IN DX 05 20 08 IN DX 06 20 08 IN DX 07 20 08 IN DX 08 20 08 IN DX 09 20 08 IN DX 10 20 08 IN DX 11 20 08 IN DX 12 20 08

IN DX 01 20 08 IN DX 02 20 08 IN DX 03 20 08 IN DX 04 20 08 IN DX 05 20 08 IN DX 06 20 08 IN DX 07 20 08 IN DX 08 20 08 IN DX 09 20 08 IN DX 10 20 08 IN DX 11 20 08 IN DX 12 20 08

SHARE IN INFLATION(BARLEY) SHARE IN INFLATION(BARLEY) 250.00 200.00 150.00 100.00 50.00 0.00 -50.00 -100.00

RATE

100.00 50.00 0.00 RATE -100.00 -150.00 -200.00 -250.00 MONTH

IN DX 01 20 08 IN DX 02 20 08 IN DX 03 20 08 IN DX 04 20 08 IN DX 05 20 08 IN DX 06 20 08 IN DX 07 20 08 IN DX 08 20 08 IN DX 09 20 08 IN DX 10 20 08 IN DX 11 20 08 IN DX 12 20 08

-50.00

Inflation rate of cereals in 2008 In the month of January 2008 the inflation rate of cereals has been increased to 1.38 as in December,2007 it was -0.38. The reasons were: The share in inflation of rice has increased to 19.08 from -37.5. The share in inflation of wheat has increased to 3.82 from -37.5. The share in inflation of jowar has declined at a faster pace to -9.92 from 168.75. The share in inflation of bajra has increased to 0.76 from -31.25. The share in inflation of maize has increased rapidly to 31.3 from -62.5. The share in inflation of barley has decreased from 68.75 to 49.62. The share in inflation of ragi has also decreased to 5.34 from 31.25 Inflation rate of cereals in 2008

Sources:www.mospi.nic.in

IN DX 01 20 08 IN DX 02 20 08 IN DX 03 20 08 IN DX 04 20 08 IN DX 05 20 08 IN DX 06 20 08 IN DX 07 20 08 IN DX 08 20 08 IN DX 09 20 08 IN DX 10 20 08 IN DX 11 20 08 IN DX 12 20 08

MONTH

SHARE IN INFLATION(RAGI) SHARE IN INFLATION(RAGI)

In the month of February, 2008 the inflation rate of cereals has been decreased to 0.9% as in January, 2008 it was 1.38%. The reasons were: The share in inflation of rice has increased to 50 from 19.08. The share in inflation of wheat has increased to 46.67 from 3.82. The share in inflation of Jowar has increased to -23.33 from -9.92. The share in inflation of bajra has drastically declined to -50.00 from 0.76. The share in inflation of maize has increased to 36.37 from 31.30. The share in inflation of barley has increased 50.00 from 49.62. The share in inflation of ragi has also decreased drastically from 5.34 to -10.00. Inflation rate of cereals in 2008 In the month of March, 2008 the inflation rate of cereals has increased to 1.28% as in Febuaray, 2008 it was 0.9%. The reasons were: The share in inflation of rice has drastically decreased to 13.91 from 50. The share in inflation of wheat has also drastically decreased from 46.67 to 5.96. The share in inflation of Jowar has now increased to 5.96 from -23.33. The share in inflation of bajra has increased from -50.00 from 12.58. The share in inflation of maize has decresed to 19.21 from 36.67. The share in inflation of barley has decreased from 50.00 to 33.11. The share in inflation of ragi has also increased rapidly from 10.00 to 9.27. Inflation rate of cereals in 2008 In the month of April, 2008 the inflation rate of cereals has increased constantly to 2.45% as in March, 2008 it was 1.28%. It has just doubled. The reasons were: The share in inflation of rice has increased to 23.29 from 13.91. The share in inflation of wheat has rapidly increased to 93.15 from 5.96. The share in inflation of Jowar has increased to 30.14 from 5.96. The share in inflation of bajra has increased to 16.44 from 12.58. The share in inflation of maize has declined to 6.85 from 19.21. The share in inflation of barley has declined drastically to -69.86 from 33.11. The share in inflation of ragi has also decreased from 9.27 to 0.00. Inflation rate of cereals in 2008 In the month of May, 2008 the inflation rate of cereals has declined to 0.0% as in April, 2008 it was 2.45%.

Sources:www.mospi.nic.in

The reasons were: The share in inflation of rice has decreased drastically from 23.29 to -7.69. The share in inflation of wheat has also declined to 1/4 i.e o 23.08 from 93.15. The share in inflation of Jowar follows the same trend like the above ones. It also drastically decreased to -100.00 from 30.14. The share in inflation of bajra has decreased to 7.9 from 16.44. The share in inflation of maize has declined to -15.38 from 6.85. The share in inflation of barley has increased rapidly from -69.86 to 192.31. The is no change in the share of ragi. Inflation rate of cereals in 2008 In the month of June, 2008 the inflation rate was constant as it was in May, 2008 i.e. 0.00% The reasons were: The share in inflation of rice has increased to -0.61 from -7.69. The share in inflation of wheat has drastically declined to -4.91 from 23.08. The share in inflation of Jowar has increased to -100.00 from -0.61. The share in inflation of bajra has increased to 7.69 from 14.72. The share in inflation of maize has increased rapidly to 18.40 from -15.38. The share in inflation of barley has declined drastically to 48.47 from 192.31. The share in inflation of ragi has also increased from 0.00 to 24.54. Inflation rate of cereals in 2008 In the month of July, 2008 the inflation rate of cereals has increased to 0.8 as in June, 2008 it was 0.00%. The reasons were: The share in inflation of rice has decreased constantly at a faster pace to -22.41 from -0.61. The share in inflation of wheat has also decreased to -25.86 from -4.91. The share in inflation of Jowar has increased rapidly to 56.90 from -0.61. The share in inflation of bajra has drastically decreased to -37.93 from 14.72. The share in inflation of maize has declined to 5.17 from 18.40. The share in inflation of barley has also decreased to 44.83 from 48.47. The share in inflation of ragi has increased from 24.54 to 79.31. Inflation rate of cereals in 2008 In the month of August, 2008 the inflation rate of cereals has increased constantly to 0.57% as in July, 2008 it was 0.8%. It has just doubled. The reasons were:

Sources:www.mospi.nic.in

The share in inflation of rice has increased rapidly to 15.38 from -22.41. The share in inflation of wheat has rapidly increased to -1.54 from -25.86. The share in inflation of Jowar has also declined to 16.92 from 56.90. The share in inflation of bajra has increased at a faster to 78.46 from -37.93. The share in inflation of maize has increased to 12.31 from 5.17. The share in inflation of barley has declined drastically to -49.23 from 44.83. The share in inflation of ragi has also decreased from 79.31 to 27.69. Inflation rate of cereals in 2008 In the month of September, 2008 the inflation rate of cereals has declined to 0.14% as in August, 2008 it was 0.57%. The reasons were: The share in inflation of rice has drastically declined to -88.89 from 15.38. The share in inflation of wheat has rapidly increased rapidly to 44.44 from -1.54. The share in inflation of Jowar has increased to 66.67 from 16.92. The share in inflation of bajra has decreased drastically to 0.00 from 78.46. The share in inflation of maize has just increased 12 times to 144.44 from 12.31. The share in inflation of barley has increased rapidly to 133.33 from -49.23. The share in inflation of ragi has also decreased drastically to -200.0 to 27.69. Inflation rate of cereals in 2008 In the month of October, 2008 the inflation rate of cereals has increased 8 times to 3.2% as in September, 2008 it was 0.14%. It has just doubled. The reasons were: The share in inflation of rice has increased rapidly to 48.19 from -88.89. The share in inflation of wheat has drastically decreased to -9.33 from 44.44. The share in inflation of Jowar has also drastically decreased to -3.63 from 66.67. The share in inflation of bajra has increased to 9.84 from 0.00. The share in inflation of maize has declined at faster sate to 6.74 from 144.44. The share in inflation of barley has declined drastically to -6.74 from 144.44. The share in inflation of ragi has also increased rapidly from -200.00 to 52.85. Inflation rate of cereals in 2008 In the month of November, 2008 the inflation rate of cereals has declined to 0.76% as in October, 2008 it was 3.2%. The reasons were: The share in inflation of rice has decreased to 16.88 from 48.19. The share in inflation of wheat has rapidly increased to 14.29 from -9.33. The share in inflation of Jowar has decreased to -42.86 from -3.63. The share in inflation of bajra has increased to 19.48 from 9.84.

Sources:www.mospi.nic.in

The share in inflation of maize has increased rapidly to 29.87 from 6.74. The share in inflation of barley has increased rapidly to 63.64 from -4.66. The share in inflation of ragi decreased drastically from -1.30 to 52.85. Inflation rate of cereals in 2008 In the month of December, 2008 the inflation rate of cereals has decreased to 0.21% as in November, 2008 it was 0.76%. The reasons were: The share in inflation of rice has decreased to 0.0 from 16.88. The share in inflation of wheat has rapidly decreased to -55 from 14.29. The share in inflation of Jowar has increased at a faster pace to 25 from -42.86. The share in inflation of bajra has decreased to 0 from 19.48. The share in inflation of maize has increased to 85 from 29.87. The share in inflation of barley has increased to 100 from 63.64 The share in inflation of ragi has also decreased drastically from -1.30 to -55.

2009
INFLATION RATE OF CEREALS INFLATION RATE OF CEREALS 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5
IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09

RATE

MONTH

SHARE IN INFLATION(RICE) SHARE IN INFLATION(RICE) 250.00 200.00 150.00 100.00 50.00 0.00 -50.00 -100.00 -150.00

RATE

Sources:www.mospi.nic.in

IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09

10 MONTH

RATE 50.00 0.00 100.00 150.00 200.00 -50.00 100.00 0.00 -100.00 -200.00 -300.00 -400.00 -500.00 -600.00 -700.00
500.00 -500.00 0.00

RATE -100.00
-2000.00 -1500.00 -1000.00

Sources:www.mospi.nic.in
RATE MONTH SHARE IN INFLATION(BAJRA)

SHARE IN INFLATION(JOWAR)

SHARE OF INFLATION(MAIZE)

SHARE IN INFLATION(JOWAR)

SHARE IN INFLATION(BAJRA)

SHARE OF INFLATION(MAIZE)

11
MONTH

MONTH

IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09
IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09

IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09

SHARE IN INFLATION(BARLEY) SHARE IN INFLATION(BARLEY) 1400.00 1200.00 1000.00 800.00 600.00 400.00 200.00 0.00 -200.00
IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09

RATE

MONTH

SHARE IN INFLATION(RAGI) SHARE IN INFLATION(RAGI) 500.00 400.00 300.00 200.00 100.00 0.00 -100.00

RATE

Inflation rate of cereals in 2009 In the month of January, 2009 the inflation rate of cereals has increased to 1.3% as in December, 2008 it was 0.21%. The reasons were: The share in inflation of rice has increased to 6.19 from 0.00. The share in inflation of wheat has rapidly increased to 32.74 from -55. The share in inflation of Jowar has decreased to 7.08 from 25. The share in inflation of bajra has increased to 15.04 from 0.00. The share in inflation of maize has decreased drastically to 31.86 from 85.0. The share in inflation of barley has also decreased drastically to -5.31 from 100. The share in inflation of ragi has also increased from -55 to 12.39.

Sources:www.mospi.nic.in

IN DX 01 20 09 IN DX 02 20 09 IN DX 03 20 09 IN DX 04 20 09 IN DX 05 20 09 IN DX 06 20 09 IN DX 07 20 09 IN DX 08 20 09 IN DX 09 20 09 IN DX 10 20 09 IN DX 11 20 09 IN DX 12 20 09

MONTH

12

Inflation rate of cereals in 2009 In the month of February, 2009 the inflation rate of cereals has increased to 1.56% as in January, 2009 it was 1.3%. The reasons were: The share in inflation of rice has increased to10.31 from 6.19. The share in inflation of wheat has decreased to 71.7 from 32.74. The share in inflation of Jowar has increased to 31.39 from 7.08. The share in inflation of bajra has increased to 22.42 from 15.04. The share in inflation of maize has decreased drastically to 9.87 from 31.86. The share in inflation of barley has also increased to -2.24 from -5.31. The share in inflation of ragi has also increased from 12.39 to 21.08. Inflation rate of cereals in 2009 In the month of March, 2009 the inflation rate of cereals has decreased to 0.4% as in February, 2009 it was 1.56%. The reasons were: The share in inflation of rice has decreased to 6.72 from 10.31. The share in inflation of wheat has drastically decreased to -5.97 from 7.17. The share in inflation of Jowar has also decreased drastically to -31.39 from 31.39. The share in inflation of bajra has decreased to 20.52 from 22.42. The share in inflation of maize has decreased to 2.61 from 9.87. The share in inflation of barley has also increased to 2.61 from -2.24. The share in inflation of ragi has also increased rapidly from 21.08 to 104.85. Inflation rate of cereals in 2009 In the month of April, 2009 the inflation rate of cereals has increased to 1.46% as in March, 2009 it was 0.4%. The reasons were: The share in inflation of rice has decreased to -1 from 6.72. The share in inflation of wheat has rapidly increased to 25.00 from -5.97. The share in inflation of Jowar has also increased rapidly to 26 from -31.34. The share in inflation of bajra has increased to 38 from 20.52. The share in inflation of maize has increased to 16.5 from 2.61. The share in inflation of barley has decreased drastically to -6.00 from 2.61. The share in inflation of ragi has also increased from 104.85 to 1.5. Inflation rate of cereals in 2009

Sources:www.mospi.nic.in

13

In the month of May 2009 the inflation rate of cereals has decreased to 0.78% as in April, 2009 it was 1.46%. The reasons were: The share in inflation of rice has increased to 0.58 from -1. The share in inflation of wheat has decreased to 13.45 from 25. The share in inflation of Jowar has increased to 52.05 from 26. The share in inflation of bajra has decreased to 22.22 from 38. The share in inflation of maize has decreased drastically to 8.77 from 16.5. The share in inflation of barley has increased to 1.17 from -6 The share in inflation of ragi has also increased to 1.75 from 1.5. Inflation rate of cereals in 2009 In the month of June, 2009 the inflation rate of cereals has decreased to 0.45% as in May, 2009 it was 0.78%. The reasons were: The share in inflation of rice has increased to 11.59 from 0.58. The share in inflation of wheat has decreased to 5.8 from 13.45. The share in inflation of Jowar has increased to 69.57 from 52.05. The share in inflation of bajra has decreased drastically to -76.81 from 22.22. The share in inflation of maize has increased to 24.64 from 8.77. The share in inflation of barley has also decreased drastically to -7.25 from 1.17. The share in inflation of ragi has also increased from1.75 to 72.46. Inflation rate of cereals in 2009 In the month of July, 2009 the inflation rate of cereals has decreased to -0.19% as in June, 2009 it was 0.45%. The reasons were: The share in inflation of rice has increased 20 times from 11.59 to 200. The share in inflation of wheat has rapidly increased rapidly to 450 from 5.80. The share in inflation of Jowar has decreased drastically to -1650 from 69.57. The share in inflation of bajra has increased rapidly to 150 from -76.81. The share in inflation of maize has decreased drastically to -600 from 24.64. The share in inflation of barley has increased rapidly to 1150 from -7.25. The share in inflation of ragi has also increased from 72.46 to 400. Inflation rate of cereals in 2009 In the month of August, 2009 the inflation rate of cereals has increased to 0.65% as in July, 2009 it was -0.19%. The reasons were:

Sources:www.mospi.nic.in

14

The share in inflation of rice has decreased drastically to 12.32 from 200. The share in inflation of wheat has also drastically decreased to -7.25 from 450. The share in inflation of Jowar has increased rapidly to 28.89 from -1650. The share in inflation of bajra has decreased to 36.96 from 150. The share in inflation of maize has increased rapidly to 23.9 from -600. The share in inflation of barley has decreased drastically to 6.52 from 1150. The share in inflation of ragi has also decreased drastically from 400 to 0.72. Inflation rate of cereals in 2009 In the month of September,2009 the inflation rate of cereals has increased to 2.06% as in August, 2009 it was 0.65%. The reasons were: The share in inflation of rice has increased to 150 from 12.32. The share in inflation of wheat has rapidly increased to 86.67 from -7.25. The share in inflation of Jowar has drastically decreased to -116.67 from 28.99. The share in inflation of bajra has increased to 60.0 from 36.96. The share in inflation of maize has decreased drastically to-20.00 from 23.19. The share in inflation of barley has also decreased drastically to -33.33 from 6.52. The share in inflation of ragi has also decreased from -26.67 to 0.72. Inflation rate of cereals in 2009 In the month of October, 2009 the inflation rate of cereals has decreased to 1.58% as in September, 2009 it was 2.06%. The reasons were: The share in inflation of rice has decreased drastically to -118.18 from 150. The share in inflation of wheat has also drastically decreased to -190.91 from 86.67. The share in inflation of Jowar has rapidly increased to 40.91 from 60.00. The share in inflation of bajra has increased to 50.00 from -20.00. The share in inflation of maize has also increased from -20.00 to 50.00. The share in inflation of barley has increased to -9.09 from -33.33 The share in inflation of ragi has rapidly increased from -26.67 to 172.73. Inflation rate of cereals in 2009 In the month of November,2009 the inflation rate of cereals has increased to 3.23 % as in October, 2009 it was 1.58%. The reasons were: The share in inflation of rice has increased to 10.67 from -118.18. The share in inflation of wheat has rapidly increased to 47.56 from -190.91. The share in inflation of Jowar has drastically decreased to -3.56 from 50.00. The share in inflation of bajra has decreased to 36.89 from 154.55.

Sources:www.mospi.nic.in

15

The share in inflation of maize has decreased to 3.56 from 50.00. The share in inflation of barley has increased to 3.11 from -9.09. The share in inflation of ragi has drastically decreased from 172.73 to 1.78. Inflation rate of cereals in 2009 In the month of December,2009 the inflation rate of cereals has decreased to 2.1% as in November, 2009 it was 3.23%. The reasons were: The share in inflation of rice has decreased to 9.27 from 10.67. The share in inflation of wheat has decreased to 33.17 from 47.56. The share in inflation of Jowar has increased to 22.44 from -3.56. The share in inflation of bajra has decreased to 30.24 from 36.89. The share in inflation of maize has decreased drastically to-4.88 from 3.56. The share in inflation of barley has increased to 3.41 from 3.11. The share in inflation of ragi has increased from 1.78 to 6.34.

2010
INFLATION RATE OF CEREALS INFLATION RATE OF CEREALS 1.00 0.50 0.00 RATE IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10 -0.50 -1.00 -1.50 -2.00 MONTH

SHARE IN INFLATION(RICE) SHARE IN INFLATION(RICE) 20 10 0 RATE IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10 -10 -20 -30 -40 MONTH

Sources:www.mospi.nic.in

16

RATE 0 50 100 150 200 100 150 200 100 80 60 40 20 0 -20 -40 -50 -100

RATE

RATE

50

-50

-100

Sources:www.mospi.nic.in
MONTH SHARE IN INFLATION(WHEAT) MONTH SHARE IN INFLATION(JOWAR) SHARE IN INFLATION(BAJRA) SHARE IN INFLATION(JOWAR) SHARE IN INFLATION(WHEAT) SHARE IN INFLATION(BAJRA)
IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10 IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10

17

MONTH

IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10

SHARE IN INFALTION(BARLEY) SHARE IN INFALTION(BARLEY) 200 150 100 RATE 50 0

IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10

-50

-100 -150

MONTH

SHARE IN INFLATION(RAGI) SHARE IN INFLATION(RAGI) 100 80 60 40 20 0 -20

RATE

Inflation rate of cereals in 2010 In the month of January,2010 the inflation rate of cereals has decreased to 0.35% as in December,2009 it was 2.1%. The reasons were: The share in inflation of rice has decreased to 4 from 9.27. The share in inflation of wheat has decreased to 26 from 33.17. The share in inflation of Jowar has increased to 26 from 22.44. The share in inflation of bajra has decreased to -2.0 from 30.24. The share in inflation of maize has increased to -4 from -4.88. The share in inflation of barley has also increased to 48 from 3.41. The share in inflation of ragi has decreased from 6.34 to 2. Inflation rate of cereals in 2010

Sources:www.mospi.nic.in

IN DX 01 20 10 IN DX 02 20 10 IN DX 03 20 10 IN DX 04 20 10 IN DX 05 20 10 IN DX 06 20 10 IN DX 07 20 10 IN DX 08 20 10 IN DX 09 20 10 IN DX 10 20 10 IN DX 11 20 10 IN DX 12 20 10

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In the month of March,2010 the inflation rate of cereals has decreased to -1.6% as in February, 2010 it was -0.76%. The reasons were: The share in inflation of rice has decreased to 9.30 from 10.17. The share in inflation of wheat has increased to 76.74 from 45.76. The share in inflation of Jowar has rapidly increased to 23.26 from -54.24. The share in inflation of bajra has decreased to 5.81 from 69.49. The share in inflation of maize has decreased to 4.65 from 10.17. The share in inflation of barley has decreased drastically to -9.30 from 15.25. The share in inflation of ragi has decreased from 3.39 to -10.47. Inflation rate of cereals in 2010 In the month of April,2010 the inflation rate of cereals has decreased to -0.78% as in March, 2010 it was -1.6%. The reasons were: The share in inflation of rice has decreased to -2.33 from 9.30. The share in inflation of wheat has decreased to 45.35 from 76.74. The share in inflation of Jowar has increased to 29.07 from 23.26 The share in inflation of bajra has increased to 9.30 from 5.81. The share in inflation of maize has decreased to 0.00 from 4.65. The share in inflation of barley has increased to 3.49 from -9.30. The share in inflation of ragi has increased from -10.47 to 15.12. Inflation rate of cereals in 2010 In the month of May,2010 the inflation rate of cereals has decreased to -0.12% as in April, 2010 it was -0.78%. The reasons were: The share in inflation of rice has increased to 0 from -2.33 The share in inflation of wheat has decreased to -21.62 from 45.35. The share in inflation of Jowar has increased rapidly to 129.73 from 29.07. The share in inflation of bajra has decreased to -13.51 from 9.30 The share in inflation of maize has decreased to -8.11 from 0.00. The share in inflation of barley has decreased to 2.70 from 3.49. The share in inflation of ragi has decreased from 15.12 to 10.81. Inflation rate of cereals in 2010 In the month of June,2010 the inflation rate of cereals has increased to 0.79% as in May, 2010 it was -0.12%.

Sources:www.mospi.nic.in

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The reasons were: The share in inflation of rice has increased to 5.41 from 0.00. The share in inflation of wheat has rapidly increased to 4.73 from -21.62 The share in inflation of Jowar has drastically decreased to 129.73 from 43.24. The share in inflation of bajra has increased to 29.73 from 13.51. The share in inflation of maize has increased to 33.78 from -8.11.. The share in inflation of barley has decreased drastically to -9.46 from 2.70 The share in inflation of ragi has also decreased from 10.81 to -7.43. Inflation rate of cereals in 2010 In the month of July,2010 the inflation rate of cereals has decreased to 0.66% as in June, 2010 it was 0.79%. The reasons were: The share in inflation of rice has increased to 12.9 from 5.41. The share in inflation of wheat has drastically decreased to -8.06 from 4.73. The share in inflation of Jowar has also drastically decreased to -2.42 from 43.24. The share in inflation of bajra has increased to 14.52 to 29.73.. The share in inflation of maize has increased to 67.74 from 33.78. The share in inflation of barley has increased to 18.55 from -9.46. The share in inflation of ragi has increased from -7.43 to -3.23. Inflation rate of cereals in 2010 In the month of August,2010 the inflation rate of cereals has increased to 0.78% as in July, 2010 it was 0.66%. The reasons were: The share in inflation of rice has decreased to -7.39 from 12.90. The share in inflation of wheat has rapidly increased 23.15 from -8.06. The share in inflation of Jowar has increased to 17.24 from -2.42. The share in inflation of bajra has increased to 22.17 from 14.52. The share in inflation of maize has decreased to 15.76 from 67.74 The share in inflation of barley has increased to 25.62 from 18.55 The share in inflation of ragi has increased from 3.45 to -3.23.

It is seen in certain cases that share of inflation of some commodities in cereals is negative that mean that that commodity is not contributing in increase in the overall inflation rate but it is certainly pulling down the rate of overall inflation which could have been more if its contribution would have been zero or above.

Sources:www.mospi.nic.in

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Sources:www.mospi.nic.in

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