India Sees Sharp Increase In Weekly Vegetable Spending In Past Few Weeks: Survey

Persistent heatwaves across multiple regions in India have significantly diminished vegetable supplies. Measures to restrict food exports and reduce import tariffs have shown minimal effectiveness

Experts suggest that any supply shortfall could be largely offset if rainfall increases by the first week of July

Source : PTI

70 per cent of households reported a significant increase of 25-100 per cent in their weekly expenditure on vegetables in recent weeks, attributable to rising prices, according to a survey conducted by LocalCircles, a community-based social media platform.

In just the past week, two-thirds of consumers have seen the price of tomatoes increase from Rs 30 per kilogram or higher to Rs 50 per kilogram or higher. In certain states, prices have soared above Rs 100 per kilogram. The situation regarding vegetable supplies and prices may deteriorate further if July, crucial for sowing in rain-fed areas, does not bring adequate monsoon rains or if excessive rainfall affects vegetable cultivation areas.

The survey suggested that local authorities might need to take action to curb profiteering. Additionally, the Department of Consumer Affairs could intervene through the NCCF to ensure subsidised availability of these vegetables in districts facing unusually high prices.

Persistent heatwaves across multiple regions in India have significantly diminished vegetable supplies. Measures to restrict food exports and reduce import tariffs have shown minimal effectiveness. While summer usually sees a decrease in vegetable availability, this year's shortfall is exacerbated by the heatwave, with temperatures soaring 4-9 degrees Celsius above average across much of the nation.

Despite its early onset, the monsoon has faltered in momentum, resulting in an 18 per cent deficit in rainfall thus far this season. This delay and insufficient precipitation in certain regions have postponed the planting of summer crops, which depend heavily on adequate rainfall for their proper development.

During the presentation of the bi-monthly monetary policy on June 7, Reserve Bank of India’s (RBI) Governor Shaktikanta Das warned about the potential impact of the scorching summer and low reservoir levels on the upcoming summer harvest of vegetables and fruits. He stressed the importance of closely monitoring the arrival of pulses and vegetables during the rabi season.

Since 2023, food inflation has been a significant concern for the Indian economy. According to government data, year-on-year inflation rates are as follows: vegetables at 28 per cent, pulses at 17 per cent, cereals at 8.6 per cent, meat and fish at 8.2 per cent, spices at 7.8 per cent, and eggs at 7.1 per cent.

Experts suggest that any supply shortfall could be largely offset if rainfall increases by the first week of July. The prices of vegetables might decrease if supplies are not adversely affected by excessive or inadequate rainfall in July. For instance, tomato prices have surged notably in southern states.