Rising vegetable prices strain household budgets across India: Survey
household consumers surveyed cutting consumption or feeling the pinch of rising prices of onion, potato and tomato and another 31% are likely to be impacted once per kg prices cross INR 50 for these items
2 in 3 household consumers surveyed confirmed paying Rs 25/kg or more for tomato, Rs 30/kg or more for potato and Rs 35/kg or more for onion. While tomatoes are still affordable at these prices, potatoes and onions are now selling at much higher rates than their average price of Rs20/kg.
The summer monsoon set in two days early in Kerala this year but so far it has remained sporadic, leading to humid weather. In most states, with temperatures rising, power cuts and water shortages are being reported. The result is, there is more demand for fruits and vegetables, which have become pricier. The prices of essential vegetables onion, potato and tomato have also shot up by 20% to 50% in the last few weeks.
Vegetable vendors blame reduced supply for the rise in prices of vegetables. Farmers state that lack of rainfall and poor water availability besides the high temperature has affected production. India’s food inflation is expected to rise, after hitting a four-month high of 8.7% in April from 8.5% in March. Even rural consumers are witnessing a sharper uptick of 8.75%, according to data released by the statistics ministry.
While announcing the bi-monthly monetary policy on June 7, Reserve Bank of India (RBI) Governor Shaktikanta Das warned that the exceptionally hot summer season and low reservoir levels may induce
