Prices of vegetables fluctuate throughout the year due to seasonal changes in temperature and weather. It is a normal phenomenon in the market economy. This fluctuation in the prices of vegetables has a significant influence on the daily life of farmers as well as consumers. India’s rain-fed farmland is heavily dependent on the monsoon rains, but this year the crops have been damaged by incessant rains.
Abundant rainfall in June contributed to timely sowing of crops and expected that this would prepare the ground for a bumper harvest. However, continuous heavy rainfall over most parts of the country damaged crops and caused a supply shortage.
Heavy downpour in the northern states of Uttarakhand and Himachal Pradesh have not only killed hundreds of people but also damaged vegetable crops. Similar is the case in Haryana and the flood plain of the Yamuna River.
This year the monsoon rains came unusually early, thus, supplies have been drastically affected. In fact the situation could get worse if such heavy downpours continue. This year, the southwest monsoon covered the entire country almost a month ahead of normal. So far India has received about five times above average rainfall. In Delhi’s prominent wholesale markets, the price of tomato, ladyfinger, cauliflower, bottle gourd and many other vegetables soared. Landslides in different parts of the country damaged roads creating transportation problems that further lead to prices of perishable items to remain high for almost a month.
The continuous increase in vegetable prices, in the last couple of years, has grabbed attention from the government as well as the people. The policymakers have found it difficult to control high inflation in recent times. Industry experts opine that the impact on inflation is limited, but could become a cause of concern if the downpours continue. Vegetable prices are unlikely to come down in the near future due to other institutional factors like a depreciating rupee and rise in minimum support price (MSP). Prices can be controlled only if the value chain is improved by increasing private sector participation.
Early arrival of monsoon, uncertainty of rains and floods have led to the fluctuating prices of seasonal vegetables and fruits. The increasing vegetable prices has impacted all and sundry. Having a curry made of tomatoes at home is considered a luxury for the lower middle class. This situation has compelled the common man to switch over to frozen, packed and other ready-to-eat food items.
Uneven and early monsoon led to about 20 to 30% hike in fruit and vegetable prices. This situation is expected to prevail till the end of the monsoon season. Customers as well as vegetable vendors are learning to live with this reality now.
