Which staple vegetables have seen a price rise
A prolonged hot and dry summer has led to a surge in the prices of staple vegetables such as onions, potatoes, and tomatoes. The trend is projected to continue until September, when new arrivals will enter the market, reports said. According to official data, the prices of onions and potatoes have remained high due to reduced output last year. Despite a slight moderation in June, tomato prices rose sharply from the previous month.
Wholesale and retail prices witness significant increase
As of June 30, wholesale onion prices saw a 106% increase compared to the previous year. Similarly, wholesale potato prices also rose by 96%. Although wholesale tomato prices declined annually by 40%, they experienced a sharp monthly increase of 112.39%. Retail prices followed suit with onions and potatoes seeing an upward trend, while tomatoes showed a monthly rise despite an annual decrease.
Impact of weather conditions on vegetable output
Last year's irregular rainfall led to a 20% drop in onion output, and the poor monsoon further reduced the production of winter-sown onions by another 20% in 2024, the Hindustan Times reported. High temperatures and falling reservoir levels since April have also affected seasonal vegetables like okra, gourds, beans, cabbage, and turnips. According to traders, heatwaves have caused severe rotting of fresh vegetables, which has impacted prices.
Government intervention and export restrictions amidst crisis
The government had initiated the sale of subsidized onions following the quadrupling of retail onion prices last August. The same year in December, the government banned export on onions, which was only lifted on May 4 with a 40% duty. Currently, retail prices of onions and potatoes in India's financial capital, Mumbai, are up by two times as compared to a year ago, while prices of tomatoes are up by almost 60%.
