Vegetables Price Check : According to data received from the Department of Consumer Affairs, tomato rates have increased by about 14% compared to a year ago. Onion prices have increased by 11% in September so far and have crossed Rs 50 per kg.
Food Prices: So far in September, the prices of onion and potatoes have increased by about 50% compared to a year ago.
The sudden increase in the prices of essential vegetables like onion and tomato in the month of September has put a heavy burden on the pockets of the common man. So far in September, the prices of onion and potato have increased by about 50% compared to a year ago. If you are wondering how the prices of tomato and onion are increasing every week, then there is a solid reason behind it. Why are the prices of these vegetables skyrocketing and what are the reasons for this. Let's find out.
Actually, due to heavy rains in some parts of the country, the crops have been damaged.
According to data received from the Department of Consumer Affairs, tomato prices have increased by about 14% compared to a year ago. Onion prices have increased by 11% so far in September and have crossed Rs 50 per kg.
What do the experts say?
Garima Kapoor, economist at Elara Securities India Pvt, said that we have seen a rise in prices mainly of onion and tomato in September. Prices rose after the removal of export duty on onion, making it necessary for the government to sell it from the price stabilization fund.
Talking about tomato rates, the main tomato producing states like Telangana, Andhra Pradesh, Maharashtra and Gujarat have received more rain than required. This has affected farming and damaged the crops.
Madhavi Arora, Chief Economist at MK Institutional Equities, said that the prices of food items, especially vegetables, have increased. In fact, there are supply disruptions due to heavy rains and floods.
Prices may increase further
Arora said that the impact of higher customs duty on imported edible oil is now being seen in retail prices as well. He cautioned that this is not good for inflation as RBI has recently reported a decline in vegetable prices during September as compared to August. He further said that with the total sowing almost complete, the focus will now be on the harvesting season. More than normal rains are expected to damage the crop and this also poses a risk of increasing food inflation.
Till September 18, the rainfall has been 7% more than the long period average for the season. While the weekly rainfall has been 7% less than the long period average. North-western and central India have received more than enough rain during the season.
At present, the total sown area has increased to 1,096.7 lakh hectares. According to the update given by the Ministry of Agriculture, this is 2% more than the same period a year ago. The reason behind this is the increased sowing of most of the major food crops. These crops include rice, pulses, coarse grains and oilseeds.
