Union Budget 2024:The jump in inflation in June was due to vegetables. However, the prices of cereals, milk, fruits and sugar have increased less than those of vegetables. Rains were not favorable in June and the heat was also very intense. However, this is not a matter of concern for Kharif crops (rice, jowar, bajra, maize, moong, groundnut, sugarcane, soybean and cotton among others), as they are mostly sown in July and August, while harvested in September and October. But irregular weather (rain and heat) has harmed vegetables.

Vegetables have been a big problem for the past one year. Inflation started to decline after hitting a peak of 11.5% in July last fiscal. But this relief did not last long as inflation started to rise from November due to rising vegetable prices. Since then, vegetable inflation has been in double digits. Vegetables have contributed an average of 26.9% and nearly 50% of the increase in food inflation during November 2023 to June 2024.

Business Today's October 2023 report 'Not on Top of It' said that apart from the weather, the difference in demand and supply is also one of the reasons for the increase in vegetable prices. A report titled 'Reduction in Vegetable Inflation in India' in April said that due to weather shocks, vegetable prices were much higher than in 2023.

Onion, potato, tomato prices rise

Some weather shocks last year and the recent heat wave in June have kept vegetable prices high. June data shows that potatoes and onions have seen inflation at 58%, tomatoes at 26.4%, garlic at 78% and most green vegetables also have double-digit inflation.

According to the data of the Department of Consumer Affairs, tomato has reached a high of Rs 52 per kg in June 2022, Rs 109 in July 2023 and Rs 120 per kg in July 2024. The question arises as to how to control these prices.

According to a report, prices can be controlled by adopting some measures in the short term. Such as freeing up food reserves, facilitating imports, restricting exports and curbing hoarding. However, the frequent fluctuations in food prices in India in the last 4-5 years are clearly due to climate change. The study shows that these will increase further in the coming years. Therefore, there is a need to take immediate action on the suggestions to be adopted for a short time.

Ultimately all hopes rest on the monsoon

Ultimately, all hopes rest on the monsoon. According to the forecast of the Indian Meteorological Department, we hope that the monsoon will be good this financial year and kharif sowing will pick up, which will improve agricultural production, reduce pressure on food prices and reduce inflation.