Reining in inflation: Food prices remain a key concern - The Tribune India

Join Whatsapp Channel

Reining in inflation

Food prices remain a key concern

Reining in inflation

Photo for representational purpose only. - File photo



INDIA’s retail inflation eased to 6.83 per cent in August from a 15-month high of 7.44 per cent in July, but food prices remain a key concern. Since last year, erratic weather conditions have hit the production of vegetables, milk and cereals. A weak monsoon in several parts of the country and rising crude prices are likely to keep up the pressure on food prices. Food inflation was up 9.94 per cent in August, after a rise of 11.51 per cent in July. Vegetable inflation eased to 26.14 per cent from 37.34 per cent. The consumers have been feeling the pinch. Ironically, the growers are not the beneficiaries of the price escalation. The middlemen continue to have a field day.

The cost of a vegetarian thali in an average household jumped 24 per cent in August as compared to a year ago. Ratings agency CRISIL attributed a huge share of the surge to high prices of tomato. The tomato crisis of July-August exemplified the inherent unfairness in the farming sector. The prices skyrocketed as weather variations led to crop damage. In north India, these touched Rs 300 per kg. In Maharashtra, the retail price was Rs 160. Today, following a glut, tomato is selling for as low as Rs 2 per kg, forcing angry farmers to dump their crop. Whether prices surge or crash, they remain the net losers.

The Reserve Bank of India Governor expects the spike in vegetable prices to ebb, but has cautioned the monetary policy committee to remain watchful of the inflation situation. A prolonged pause in policy rates is likely. As elections near, reining in inflation is high on the Centre’s agenda. It is pinning its hopes on a slew of steps, such as a ban on exporting non-basmati white rice and a 40 per cent tax on onion exports.

#Inflation #Monsoon


Top News

6 more die of suspected heat stroke as mercury soars to 49 degrees Celsius in Rajasthan

Met issues 'red' warning for Punjab, Haryana, Chandigarh; Phalodi in Rajasthan sizzles at 49 degrees Celsius

The extreme heat will continue in parts of Delhi, Rajasthan,...

Pune car crash: Juvenile's father, 5 others sent in judicial custody

Attempt made to show teen was not driving Porsche, says Pune top cop, admits to probe lapses

2 police officials suspended for lapses committed during the...

Court convicts activist Medha Patkar in defamation case filed by Delhi L-G VK Saxena

23 years after Delhi L-G VK Saxena’s complaint, activist Medha Patkar convicted in defamation case

Delhi Metropolitan Magistrate Raghav Sharma posts the matter...

Sunrisers Hyderabad post 175-9 against Rajasthan Royals in IPL Qualifier 2

IPL 2024: Royal 'harakiri' puts Sunrisers Hyderabad in IPL final, to face KKR

Apart from Boult (3/45) and Avesh Khan (3/27), Sandeep Sharm...


Cities

View All