A prolonged hot and dry summer has strained the supply of many commonly consumed staple vegetables shifting demand towards potato, onion, and tomato, due to which their prices remain stubbornly high due to lower output last year.

Official data indicates that tomato rates moderated in June of last year, although the produce was much more expensive than it was in May of the previous year. According to sources, the trend is expected to last until September, when new products are expected to hit the market.

Official data indicates that because of the lower yield of onions and potatoes the previous year, prices have remained high. Tomato prices increased significantly in June despite a minor slowdown in the previous month. Retail prices trended upward for potatoes and onions and downward for tomatoes, but tomatoes had a monthly increase despite an annual reduction.

staple vegetables
Image Source: www.staplesvegetables.co.uk

To reduce food inflation, officials are depending on heavy kharif, or summer, planting. According to an official, increasing summer sowing should have a "salutary effect" on market mood and lower prices. According to a second official, a hot and dry summer that began in April put a strain on supplies of several regularly consumed vegetables, changing demand in favor of potatoes, onions, and tomatoes and driving up costs.

As of June 30, average wholesale onion pricing increased by 106% over the previous year, from ₹1260.66 a quintal (100 kg) to ₹2603.55 a quintal. The cost of wholesale potatoes increased by 96%, from ₹2116 per quintal to ₹1076.14 per quintal. June saw a 40% yearly drop in wholesale tomato prices, from ₹5680.75 per quintal to ₹3368.28 per quintal. Wholesale pricing, however, increased 112.39% from ₹1585.84 per 100 kg to ₹3368.28 in comparison to the previous month, demonstrating volatility.

Surge in Wholesale Prices of Staple Vegetables

The weight of vegetables in the consumer inflation basket is 6%. The three products account for 44% of a household's monthly vegetable expenditure, per an HT analysis. Retail costs have also risen somewhat. On July 2, the onion national modal cost (a sort of average) was ₹42.21 per kg, an 81% increase over the price of ₹23.29 per kg one year prior. Potatoes are now retailing at ₹34.4 a kg, up 57% from ₹21.91 a kg a year earlier. On June 2, tomatoes were priced at ₹54.42 per kg, a 15% decrease from ₹64.5. Nonetheless, the crop saw a dramatic 71% increase in price from ₹31.74 to ₹54.42 per kg during the previous month.

August of last year saw a quadrupling of retail onion prices, which prompted the government to begin selling the public subsidized onions. Because of erratic rainfall in 2023, the yield of onions fell by 20%. The output of rabi, or winter-sown onions, was further curtailed by 20% in 2024 to 19 million tonnes, from 23.7 million tonnes the year before due to the residual effects of a bad monsoon the year before.

Because it provides up to 75% of the nation's annual supply, rabi onions are vital. The sale of subsidized onions was started by the government after the retail price of onions tripled in August of last year. Onion exports were prohibited by the government in December of that year; the embargo was only overturned on May 4th, when a 40% tariff was applied. At the moment, the retail cost of potatoes and onions in India's financial capital, Mumbai, is up by two times as compared to a year ago, while prices of tomatoes are up by almost 60%.

According to the Hindustan Times, the unreliable rainfall in the previous year caused a 20% decrease in onion production, and the unsatisfactory monsoon in 2024 further decreased the yield of winter-sown onions by 20%. Seasonal foods including okra, gourds, beans, cabbage, and turnips have also been impacted by the high temperatures and decreasing reservoir levels since April. Heatwaves, according to traders, have severely rotted fresh vegetables, which has affected pricing.

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