After increasing by 11.51 percent in July, food inflation increased by 9.94 percent in August. Inflation for vegetables decreased from 37.34 to 26.14 percent. The pinch has been felt by the consumers. Ironically, the price increase does not benefit the growers. The intermediaries continue to enjoy themselves greatly.
Source: CNBCTV18.com
When compared to August of last year, the price of a vegetarian thali in an average home increased by 24 percent. A significant portion of the increase was ascribed by ratings agency CRISIL to rising tomato costs.
The Julyu2013August tomato crisis served as a prime example of the inherent unfairness in the agricultural industry. Due to agricultural damage from weather changes, the costs surged. These prices reached Rs 300 per kg in northern India. The retail cost in Maharashtra was Rs 160. Due to a glut, tomatoes are already selling for as little as Rs 2 per kg, driving outraged farmers to abandon their harvest. They continue to be the net losers whether prices increase or decrease.
Source: CNBC-TV18
The governor of the Reserve Bank of India anticipates that the increase in vegetable prices would subside, but he has advised the monetary policy committee to keep an eye on the inflation situation. There will probably be a long rate halt. Inflation control is a top priority for the Centre as elections get closer. It is placing its hopes in a number of measures, including a prohibition on the sale of non-basmati white rice and a 40% levy on the export of onions.
What do you think about this? Comment below.
