Due to heavy rains in some states, the price of vegetables is increasing rapidly. This has created a risk of food inflation increasing in the near future. According to ICICI Bank Research Note, the price of vegetables like onion, cauliflower, garlic and bitter gourd has increased.
Till September 18, a total of 871.9 mm of rain has fallen in India. This is 107% of the long period average. But the regional distribution of monsoon is not the same. The southern, central and northwestern regions have received more rain than the average. Whereas the east and northeast have still received less than normal rainfall.
Sowing of pulses has reached 12.8 million hectares with a growth of 7.9% on an annual basis. However, this is below the long-term average of 13.6 million hectares. Meanwhile, sowing of coarse cereals and oilseeds has increased by 3.6% (YoY) and 1.5% (YoY) respectively.
India’s retail inflation stood at 3.65%. Vegetable prices rose 10.7% (YoY), compared to a 6.8% (YoY) increase in July.
Kharif output expected to be better
A good harvest is expected in the Kharif season. Sowing under Kharif crops reached 109.7 million hectares, a growth of 2.2% (YoY). This is also slightly above the long term average of 109.6 million hectares.
On Thursday, Agriculture Minister Shivraj Singh Chauhan said that rice production in the country is expected to surpass last year’s level in the Kharif season, citing good yield. Rice produced in the Kharif season accounted for 70% of India’s total rice production last year.
