Consumers across India will have to pay higher prices for vegetables until June due to temperatures above normal. A CRISIL report states that this trend, driven by erratic weather patterns and climate change, highlights the vulnerability of vegetable prices to environmental factors. The report further states that India, one of the most climatically vulnerable countries, faces increasing risks to vegetable production and prices due to extreme weather conditions, such as Heat waves, floods and storms. Rising temperatures further exacerbate pest problems, adding to the challenges faced by both farmers and consumers.
The report also mentions that despite attempts by stakeholders to address the problem through various measures such as creating security stocks and importing vegetables, the perishable nature of vegetables limits the effectiveness of such solutions. Additionally, India does not have adequate infrastructure such as cold storage facilities, further complicating efforts to stabilize prices.
During FY2024, India witnessed significant fluctuations in vegetable inflation, with prices soaring to high levels. While tomatoes and onions often grab the headlines, other vegetables such as garlic, ginger, brinjal, parwal and beans also saw sharp price increases.
“Vegetable prices usually follow a seasonal pattern: they increase in summers and decrease in winters, when new stocks arrive in the market. This phenomenon did not occur in the winter of fiscal year 2024,” the report states.
It further added that “vegetables were responsible for around 30% of food inflation in FY2024, much more than its 15.5% share in the food index.”
The impact of turbulent weather conditions, including El NiƱo-induced heat and a below-normal southwest monsoon, was evident in supply chain disruption and declining crop yields. Rising temperatures exacerbate pest problems, further affecting vegetable production and prices.
The India Meteorological Department (IMD) has forecast an above-normal southwest monsoon this year, but rainfall distribution remains a crucial factor. With above-normal temperatures expected through June, vegetable prices are likely to remain high in the coming months.
As India faces the challenges posed by climate change and extreme weather events, stakeholders must prioritize resilience-building measures in the agricultural sector. Addressing infrastructure gaps and implementing sustainable agricultural practices is essential to mitigate the impact of climate variability on vegetable production and prices.
With contributions from ANI