In India, the vegetable market has seen a sharp increase in prices, attributed to a combination of supply chain disruptions, erratic weather patterns, and policy decisions. The imbalance in supply, primarily due to weather disturbances, has significantly impacted crop yields in major agricultural regions like Karnataka and Andhra Pradesh. "Weather events have impacted the yield and quality of vegetables this year. Late rains disrupted harvest cycles, particularly for tomatoes and onions, leading to supply shortages," explained Rudra Mahajan, an agricultural economist. The National Statistics Office (NSO) highlighted a 28% decrease in mandi arrivals, exacerbating the supply shortage and elevating prices.
Despite the expectation of lower prices in winter due to a surplus of vegetables such as peas, carrots, and cabbage, this year has defied norms. Tomato prices have witnessed a 161% year-on-year increase, with onion prices up by 52%. The cost of vegetables like bhindi (okra) has reached $0.95 per kilogram, with few vegetables priced below $0.47 per kilogram. "Traditionally, winter brings lower prices due to increased availability, but this year, the supply chain hasn't been able to recover from earlier disruptions," stated Sharon Kumar, a supply chain analyst.
Policy decisions, including revised import duties on edible oils, have also played a role in driving food inflation. The increased duties on crude and refined soybean, palm, and sunflower oils have indirectly contributed to the rise in vegetable prices. "A lack of efficient storage and distribution infrastructure has worsened the situation. Perishables like vegetables rely on a seamless supply chain, which remains underdeveloped in many regions," Mahajan noted. With food inflation reaching 10.87% in October 2024 and overall retail inflation at 6.2%, households are feeling the pressure of elevated vegetable prices.
However, economists like Divyanka Sharma are cautiously optimistic about a potential price correction in the coming months, depending on the progress of the rabi sowing season and the kharif harvest outcomes. "By December or early January, we may see a reduction in vegetable prices if there are no further weather disruptions. However, structural issues like weak storage infrastructure need long-term attention," Sharma remarked.
Source: News Meter