New Delhi: Why Are Tomato, Onion, and Milk Prices Going Up? Economic Survey 2024 Explained......
The Economic Survey 2024, released by the Union Finance Ministry ahead of the upcoming Union Budget, sheds light on the rising prices of essential food items such as tomatoes, onions, and milk across India.
According to the survey, global food inflation has been a significant issue over the past two years. Climate change factors, including heat waves, uneven monsoon distribution, unseasonal rainfall, hailstorms, and extreme drought conditions, have contributed to these price increases. These weather-related challenges have adversely affected agriculture, leading to reduced farm outputs and soaring food prices.
The survey highlights that food inflation, as tracked by the Consumer Food Price Index (CFPI), has jumped from 3.8% in FY22 to 6.6% in FY23, and further to 7.5% in FY24. Several factors impacting agricultural productivity and food supply chains have driven this rise.
Tomato Price Surge Vegetable and pulse production has been hit hard by adverse weather conditions. The spike in tomato prices in July 2023 was linked to seasonal crop variations and specific crop diseases like white fly infestations. Additionally, early monsoon rains in northern India and logistics issues caused by heavy rainfall in certain areas contributed to the price hike.
Onion Price Increase Onion prices also surged due to multiple factors. Rainfall during the last harvesting season compromised the quality of rabi onions. Delays in sowing during the kharif season, prolonged dry spells affecting kharif production, and trade restrictions imposed by other countries further worsened the situation.
Milk Price Rise Milk prices have been climbing since early 2023. This increase is due to a reduction in artificial inseminations during the peak of the pandemic and higher costs for animal feed. As a result, milk cooperatives had to raise prices for milk and dairy products to cover these increased expenses. However, the rate of increase in milk prices moderated towards the end of FY24.
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