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- Vegetable inflation rose to 29.3% in June from 27.4% in May.
- Low potato production in East Bengal, UP due to seasonal disturbance
- Agricultural sector experts and economists said
Even though the monsoon is progressing well, prices of vegetables and especially potatoes are likely to continue their upward trend in the near term.
The exceptional heat this time across the country has caused widespread damage to crops. So the supply has been disrupted against the demand, said experts and economists in the agricultural sector. Expensive vegetables are a concern for policymakers. The inflation rate of vegetables has reached 29.3 percent in June. Earlier this rate was 27.4 percent in May. This increase is widespread. So the prices of tomato, onion and potato and the prices of other vegetables have been affected. Potato prices are likely to remain strong for the next few months, agriculture analysts said. He further added that unlike the normal trend of November and December, there is a possibility of shortage of tubers in early October this year. Potato-producing states like East Bengal and Uttar Pradesh have suffered seasonal crop losses. So the prices have gone up. Potato production this year is expected to be around 58.99 million tonnes. Which is less compared to last year's production of around 60.14 million tonnes. This figure was revealed in the first advance estimate of the Ministry of Agriculture.
Fearing a price hike in the coming months, large farmers and sellers have stockpiled potatoes. The storage in cold storages is also comparatively low this year. Apart from potatoes, the prices of other vegetables are also likely to skyrocket. Of course all items will be affected by base year-on-year changes in inflation rates. Among the agricultural produce, vegetables are the most affected by seasonal adverse events. Due to seasonal problems, vegetables became expensive in June. All in all, it is a wait-and-see situation, experts have said.