It’s still some days left for RBI’s monetary policy review scheduled for 5th April, but the past few weeks have seen the prices of several essential food items rising. These prices were still for almost a year, which is why it has suddenly become difficult for the common man to deal with this sudden
While chilli and potato prices are doubled, maize, wheat and soya bean have seen a hike of 4 to 10% in the last one month. Similarly, palm oil, which until recently was at its lowest price in five years, has seen a price rise of 10% y-o-y.
Sugar prices, on the other hand, have gone high by 28% in six months, registering the max hike.
Analysts blame a fall in output caused by a decrease in crop area and unfavourable weather conditions for this price rise. "Globally, sugar prices will continue to go up due to the weather problems," Prerana Desai, vice-president (research) at Edelweiss Agri Value Chain, told ET.
"The next crop in India is expected to be short unless there is a surprise from UP. The prices will continue to move up in the next 12 to 24 months."
While February saw a fall in food inflation to 5.3% from 6.85% in January, it also brought retail inflation within RBI's target of 6%.
As for potato, farmers and traders say that prices have risen 50% in the last one month because acreage fell in West Bengal and UP and also because the late blight disease damaged a majority of crop.
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