With good monsoon, vegetable prices may come down

Some cheer might be in store for households as a normal monsoon, after two straight years of drought, is set to improve crop output and push prices downwards.

Indeed, the futures market is reflecting such a scenario as expectations of future prices in certain key commodities have declined marginally (see table) and are set to fall even further as rainfall intensity and soil moisture conditions improve, according to Madan Sabnavis, chief economist, Care Ratings.

The Indian Meteorological Department pegged cumulative monsoon from June 1-July 20 being 1% above the long period average. Futures prices are wholesale prices at the country's largest farm futures bourse NCDEX.