May 30 (Punjab Khabarnama) : Food inflation has emerged as a topic of discussion in the ongoing Lok Sabha elections in the country. Due to prolonged heatwaves and low rainfall after monsoon in some parts of the country, the supply of major vegetables has been disrupted in 2024. Although there has been some reduction in prices on a week-to-week basis compared to last year, there has been a sharp increase in the price of most vegetables. The rise in the price of potatoes is notable in the increase in the price of vegetables since March 2024.
Traders say that production has decreased due to the spoilage of some crops. Also, the cost of storage and transportation has also increased. Due to this, the price of potatoes is increasing at this time. Food inflation may remain high in the coming months due to the high price of vegetables.
QuantEco Research wrote in a note, ‘In some areas like Gujarat and Rajasthan, heatwaves have lasted for 9 to 12 days, which is above normal. In the last few weeks, many areas of the country have been affected by heatwaves. Due to this, there has been pressure on the prices of vegetables, fruits, milk, pulses and other food items. However, the price pressure due to heat wave in May 2024 is on average less than in previous years. We estimate that due to the severity of the heat wave, the inflation rate of perishable goods may increase by up to 200 basis points and the inflation rate based on retail prices may increase by 25 to 30 basis points. ‘
Going forward, the southwest monsoon will determine how the price of vegetables will be in the coming months. If the initial monsoon is good, it will help increase the supply and reduce the price, but if the drought situation persists for a long time, then the price of vegetables will increase due to crop failure. This is absolutely true in the case of India because the storage and transportation infrastructure for fresh fruits and vegetables is inadequate compared to the production.