Tomato prices likely soften in next 2-3 weeks as supplies from hilly states commence
时间:2024-06-26 07:55:18 阅读(143)
Consumers reeling under the impact of sharp spikes in tomato prices could get relief soon as prices of stable vegetables are likely to moderate in the next two to three weeks due to commencement of arrivals from hilly states of Himachal Pradesh and Uttarakhand.
Since the last week of June, retail modal prices of the vegetable have started to increase and hit Rs 100/kg on June 30, a 400% increase from the price prevailed a week ago.
Most traders in Delhi, Maharashtra and Karnataka to whom FE spoke said mandi prices would remain elevated for the next few weeks before witnessing a decline.
“Tomato arrivals have commenced from the hilly states, it would reflect in the softening of prices in next two weeks,” Surendra Budhiraja, a tomato trader and member of Azadpur mandi said. He said that there has been some disruption in supplies because of rains in the hills causing disruption of transportation.
At Delhi’s Azadpur mandi, the largest wholesale market for fruits and vegetables in Asia, tomato prices rose to Rs 1,800–2,000 per 25 kg bag on Saturday against Rs 900-1,000 a bag prevailed in the middle of last month.
Hilly states have around 10% share in the country’s tomato production and help improve supplies in the northern region.
“With improved supplies from hilly states in near future, we should expect considerable softening of prices,” Rohit Kumar Singh, Secretary, Department of Consumer Affairs, told FE.
However, the mandi prices in Maharashtra and Karnataka, which have a combined share of 17% in production of the key vegetable, would soften once new crops start arriving in the market by later parts of this month.
“Harvesting in Maharashtra and Karnataka will commence by the end of July and prices are likely to fall by early next month,” Uday Deolankar, adviser to the Maharashtra agriculture department, said.
The benchmark mandi prices of tomato at Kolar, Karnataka, declined by 30% to Rs 4,670/quintal on July 7 from its peak of `6,670/quintal on June 30. At the beginning of last month, mandi prices were Rs 2,000/quintal.
Delay in the arrival of monsoon and higher-than-normal temperature that prevailed in April and May in key producing states of Karnataka and Maharashtra pushed up prices sharply.
According to a department of consumer affairs note, ‘tomato supply is spread across the country, any production vulnerability in any of the states disturbs the supply chain,’. The department has identified June-August and October-November as lean production months when prices rise during these months.
Around 18 states including Madhya Pradesh, Gujarat, Maharashtra, Chhattisgarh, Odisha, West Bengal, Telangana, Karnataka, Tamil Nadu and Punjab contribute to tomato production.
Retail inflation in vegetables, which remained in the negative zone since November last year, declined by 8.18% in May, 2023. Interestingly, inflation in tomatoes had fallen at a sharper rate of 52.8% last month.
Tomato has a weightage of 0.6% in CPI inflation.
Tomato production in the 2022-23 crop year (July-June) has declined marginally to 20.62 million tonne compared to previous year.
Surge in tomato prices have also impacted global fast food chain McDonald, which last week announced exclusion of tomatoes in their burgers and other products.
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- AMC”.
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In its consultation paper, Sebi has suggested that trustees of mutual funds should focus on market abuse by AMC, its employees and mis-selling by the AMC to increase the asset base.
Also, trustees should be responsible for fairness of fees and expenses charged by the AMC, compare its performance with peers and ensure that AMC’s sponsor is not getting any undue advantage.
In addition to the core areas, the trustees should be responsible for periodically reviewing the steps taken by AMCs for the folios which do not contain all KYC attributes with bank details.
Further, Sebi has suggested that trustees and their resource persons should independently evaluate the extent of compliance by AMC and not merely rely on AMC’s assurances.
To facilitate trustees’ supervision, AMCs should provide them with analytical information.
Presently, the trustees primarily rely on the AMCs for ensuring compliance with the applicable rules.
Under the rules, trustees hold the property of the mutual fund in trust for the benefit of the unitholders. The trustees appoint an AMC to float schemes for the mutual fund and manage the funds mobilised under various schemes, in accordance with the investment objectives.
“In view of the increasing scale and reach of the mutual fund industry, trustees’ role in respect of unitholders’ protection assumes even greater significance,” Sebi said on Friday.
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Over the past decade there has been a five-fold increase in the size of the mutual fund industry. The assets under management (AUM) has surged from Rs 7.93 lakh crore in November 2012 to Rs 39.89 lakh crore in December 2022.
To ensure that trustees devote time and attention to their core responsibilities, Sebi has suggested that for fulfilling other responsibilities, trustees may rely on professional firms such as audit firms, legal firms, merchant bankers for carrying out due diligence on their behalf.
The Sebi also listed some duties trustees can delegate to AMCs. This include ensuring that all systems are in place prior to the launch of any scheme by the AMC, and calculating any income in the mutual fund due to the fund and any income received in the mutual fund for unitholders.
The regulator has proposed to provide a one year time to existing trustees with board of trustee structure to convert into a trustee company, from governance point of view.
Presently, two structures for trustees are permitted — corporate and board of trustees structure. Moreover, there are a few mutual funds which have the board of trustees structure while the trustees of all other mutual funds have adopted the structure of a trustee company.
Considering the enhanced role of trustees over the period of time, Sebi has suggested to increase the minimum number of trustees to adequately perform their functions. Presently, the minimum number of trustees prescribed is four.
Also, it has been proposed that the chairperson of the trustee company should be an independent director.
Sebi has suggested that apart from the meeting of the audit committee of AMCs and trustees (which mostly comprises of independent directors), the board of AMCs and the board of trustees may be mandated to meet at least once a year to discuss the issues concerning the mutual funds.
The regulator proposed that the existing MF Regulations on AMC and its obligations may be amended to include additional clauses with respect to the obligations of the board of AMC.
The proposed amendment may include a clause which casts an obligation on the board of AMC to ensure that all the activities of the asset management company are in accordance with the provisions of these regulations.
The Securities and Exchange Board of India (Sebi) has sought comments from public till February 24 on these proposals.
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