Unseasonal rains, crop damage, and climate change contribute to soaring vegetable prices, leading to inflationary concerns and potential economic impacts
From the month of June, India has witnessed a significant surge in vegetable prices, posing challenges to the country’s economic stability. Economists project a rise in inflation to 5.5 per cent, which could have far-reaching consequences for businesses and individuals alike. Experts emphasise that the steep increase in vegetable prices plays a significant role in driving this inflationary pressure. Tushar Trivedi, Head of Farm Business at nurture.farm, an AgriTech open digital platform, highlights that the recent price rise in vegetables is a result of unseasonal rains, crop damage, and challenges faced by growers in the supply chain. He emphasised the significance of demand and supply dynamics in determining price fluctuations and added, “The surplus in production leads to a fall in the prices and deficit in production increases the prices. When the general price rise is experienced over a long period, it’s termed inflation. Record low vegetable prices played a significant role in keeping inflation in check, as the consumer price index (CPI) based inflation reached a two-year low of 4.25 per cent in May. If prices don’t come down, it could lead to higher inflation rates for July. Higher inflation could lead to reduced purchasing power, affecting consumer spending…
