New Delhi
There was a huge jump in the prices of vegetables in India in October. While onion prices are skyrocketing, prices of many vegetables like cabbage, tomato, and bottle gourd have declined by more than 4% on a monthly basis. However, onion prices still remain at high levels, due to which the problems of consumers are not reducing. On November 6, the wholesale price of onion in Lasalgaon onion market had reached its highest level in five years. According to a report, there is little possibility of onion prices falling in the near future.
According to the report, “There has been some softening in vegetable prices in November, but onion prices remain high.” Heavy rains in August and September disrupted supplies, leading to a 28% decline in vegetable arrivals in the mandis. Its biggest impact was on tomato prices, which recorded a monthly increase of 49% in October.
Record jump in vegetable prices
Vegetable prices rose 42% year-on-year in October, the highest in the last 57 months. The main reason for this increase is believed to be the huge rise in the prices of essential commodities like tomatoes, potatoes and onions. Tomato prices have increased by 161% year-on-year, while potato and onion prices have increased by 65% and 52% respectively.
Onion prices at highest level in five years
The average wholesale price of onion at Lasalgaon APMC, the country’s largest onion market, reached Rs 5,656 per quintal on November 6, the highest in the last five years. Last time onion prices were at this level on December 10, 2019.
impact on retail inflation
This increase in the prices of vegetables has also affected retail inflation. India’s retail inflation rate in October stood at 6.21%, the highest in the last 14 months. Core inflation, which excludes food and energy, also rose to 3.7% in October from 3.5% in September, further increasing pressure on the household budget.
