Onion-Tomatoes Price Hike: The prices of the three things which are generally required for making vegetables are increasing rapidly. Potatoes, onions and tomatoes are looking costlier than before in the markets. Due to the increase in the prices of these three things, the fear of increasing food inflation i.e. food inflation in the future is now troubling people.

How much has the price of vegetables increased?

According to data from the Consumer Affairs Ministry, in the last one month, the prices of tomatoes have increased by an average of 18-26%, those of potatoes by 1.3% and those of onions by 11%. Tomato has become costlier by 50% in states like Uttar Pradesh, Bihar and Madhya Pradesh. Similar is the condition of the markets of Delhi-NCR. Due to decrease in arrivals the prices have doubled here also.

The total share of these three vegetables in the Consumer Price Index (CPI) is 1.75%, hence the increase in their prices can have a direct impact on the inflation figures. Compared to last year’s prices, tomatoes have become costlier by 25% in a year. Onion prices have also increased by 3.3%. However, potatoes are 17% cheaper than last year.

How much will it affect your plate?

According to CRISil’s report ‘Roti Rice Rate’, due to increase in the price of tomato alone, home-made vegetarian thali has become costlier by 5% and non-vegetarian thali by 7%. Since tomatoes, onions and potatoes are used extensively for cooking in India, their increase in prices will make food in restaurants expensive and many food products will become expensive. Similarly, retail inflation has reached a 16-month high of 3.9%.

Why are the prices of vegetables increasing?

Due to record breaking heat and heat wave in May and June, tomato crops got burnt in the fields, causing huge loss to the production. On top of that, due to the extreme heat, tomatoes are rotting quickly during long distance transportation. In such a situation, the supply of tomatoes has started decreasing in the markets.

In the case of onion, experts say that due to unseasonal rains, onion storage has been damaged and its quality has also been affected. In such a situation, there is a shortage of good quality onion in the market. On top of this, due to El Nino and delay in monsoon, sowing of Kharif crops has also been affected. In such a situation, the crisis may increase further.

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