With the Allahabad High Court’s order staying imports of poppy seeds continuing, the spice’s prices could rise in the coming days.
“The court issue will prolong for 2-3 months. During this period, no new import permit is likely to be issued, leading to shortage,” an upcountry market source told Business Line .
According to sources, “poppy seeds will soon touch Rs 500 a kg.”
As the festival demand has started, prices of poppy seeds have shown an uptrend.
They are currently ruling in the range of Rs 370-450 a kg.
The Allahabad High Court on August 8 ordered the posting of the case after two weeks.
supply crunch
This might give the impression that the availability will be tight and in turn, lead to huge buying.
The market, according to them, was up by Rs 20-25 a kg on Tuesday.
The Customs Department is expected to present its views in this issue before the Court at the next hearing.
Similarly, the Court has also sought the response of Directorate-General of Foreign Trade before the next hearing.
Meanwhile, the Union Government is probing imports of poppy seeds from Pakistan and Afghanistan via Turkey.
The weakening of the rupee has, on the other hand, made the landed cost of imported poppy seeds costlier, they said.