Lucknow Press
New Delhi: The prices of food items and vegetables are skyrocketing. Wholesale inflation in the country rose for the fourth consecutive month to 3.36 percent in June. The main reason for this was the increase in the prices of food items, especially vegetables and manufactured goods. Inflation based on the Wholesale Price Index (WPI) was 2.61 percent in May. In June 2023, it was 4.18 percent below zero.
How much did inflation increase in which sector?
According to the data, inflation in food items rose by 10.87 percent in June, while it was 9.82 percent in May. The inflation rate of vegetables was 38.76 percent in June, which was 32.42 percent in May. The inflation rate of onion was 93.35 percent, while the inflation rate of potato was 66.37 percent. The inflation rate of pulses was 21.64 percent in June. Inflation in the fuel and electricity sector was 1.03 percent, which is slightly less than 1.35 percent in May.
Inflation in manufactured products stood at 1.43 percent in June, higher than 0.78 percent in May. The increase in the wholesale price index in June was in line with the retail inflation figures for the month. According to data released last week, retail inflation rose to a four-month high of 5.1 percent in June. The Reserve Bank of India (RBI) mainly takes retail inflation into account while formulating monetary policy.
The Ministry of Commerce and Industry said in a statement, ‘The main reason for the increase in inflation in June 2024 was the increase in the prices of food items, manufacturing of food products, raw chemicals and natural gas, mineral oil, other manufacturing etc.’
High prices of vegetables spoil the kitchen budget
Shopkeepers in Delhi’s wholesale markets said that prices have risen, especially of staple kitchen items like potatoes, onions and tomatoes, as well as green vegetables like cauliflower, cabbage and gourd. Sanjay Bhagat, a trader at Azadpur Sabzi Mandi, said, ‘Currently, the wholesale price of tomatoes is Rs 50 to Rs 60 per kilogram. Local variety tomatoes are being sold for Rs 1,200 per 28 kg (one crate) and hybrid variety tomatoes for Rs 1,400 to Rs 1,700. Earlier, the price of tomatoes was Rs 25-30 per kilogram.’
He said, ‘The price of other vegetables in the wholesale market is around Rs 25 to Rs 28 per kg. Vegetables which used to be sold for Rs 10 to Rs 15 are now available for Rs 25 to Rs 30. The price of beans has also increased, which are being sold for Rs 40 to Rs 50 per kg.’ This year, prices have shot up due to the intense heat and delay in rains.
Common man cannot buy vegetables
Bhagat said most suppliers source tomatoes from Himachal Pradesh, where the crop has dried up. He said crops in the hills depend on rain and this time it was very hot and rain was very less. This caused the plants to dry up and get infected by pests. He said the drought was followed by heavy rains, which further damaged the crops. A trader at the Okhla Sabzi Mandi said tomatoes are being supplied from only two places right now – Karnataka and Himachal Pradesh. Prices will remain high until new crops arrive from Maharashtra around August 10-15.
Many people in Delhi who spoke to PTI said that the high prices of vegetables have spoiled their budget. Sarita, who was buying groceries at the Laxmi Nagar vegetable market, said, “I am buying limited quantities and only those things which are absolutely necessary in the kitchen. The common man cannot buy vegetables right now.”
