tradologie email id info@tradologie.com tradologie email id +91 85959 57412

India's Food Inflation Continues To Be Stubbornly High, And Vegetable And Pulses Prices Soar


Published Date: May 21, 2024
135

Are you looking to Buy Agro-Commodities In Bulk? The government responded to the over 16% increase in pulse prices in April by eliminating the import fee on chickpeas and prolonging duty-free imports of yellow peas. Over 8% more was spent on cereal in the previous two months. 

For three months, the cost of fish and meat grew steadily while the cost of eggs and spices decreased. Price increases for cereal, pulses, and vegetables probably caused food inflation to rise above 8.7%, above February's 8.66%. In April, the price of food and beverages increased by 7.87%, accounting for almost half of the retail inflation basket.

Food Inflation Uncertainty Clouds Outlook for Further Rate Cuts

Despite robust Rabi production, Madhavi Arora, Chief Economist at Emkay Global, emphasised the unpredictability surrounding food prices. She emphasised that due to fluctuating vegetable prices and an increase in climate shocks, constant monitoring is necessary. Although the RBI may not have direct control over the management of the food supply, Arora pointed out that it is under pressure to be aware of domestic dynamics. 

If you are looking to buy agro-commodities in bulk, a more notable drop in headline retail inflation, which decreased by 2 basis points in April over March, may be hampered by this pressure. At the recent MPC meeting, RBI Governor Shaktikanta Das also hinted that ongoing food inflation would impede a speedier reduction of CPI inflation, possibly kill hopes for an early rate decrease by the central bank.

Inflation Eases in Key Sectors, Food Prices Remain Elevated

"The recent softening of housing inflation, from 3.2% in January 2024 to 2.6 in April 2024; fuel and light from -0.6% in January 2024 to -4.2 % in April 2024; clothing and footwear categories from 3.3% in January 2024 to 2.8% in April 2024; and pan, tobacco, and intoxicants from 3.2% in January 2024 to 2.9% in April 2024 has resulted in a significant decrease in inflation," said Sanjeev Agrawal, president of the PHD Chamber & Industries. However, the inflation rate for food and drink remained fixed at 7.8 in April 2024. The inflation trend is expected to revert to normal by September or October 2024, when more Kharif crops will be added to the mandis, increasing the supply." This can be a greta opportunity for sellers looking to export bulk agro-commodities.

Food Inflation Inches Up, Global Commodity Prices Pose Risk

The chief economist of CareEdge Ratings, Rajani Sinha, noted that after a year, the deflation of fat and oil had reduced and food inflation had reversed, rising to 7.9%. Though expectations of a regular monsoon brighten the outlook, concerns about rising inflation continue in certain food categories like pulses and vegetables. The monsoon's dispersion is still quite important, though. Furthermore, the increase in the price of commodities globally, especially industrial metals, presents an additional danger to inflation and calls for further examination because of the possible effects on the consumer basket.

Conclusion

To put it briefly, India's persistent food inflation poses economic difficulties due to the skyrocketing costs of pulses and vegetables. Consumer prices are impacted by inflation, which is still high despite government attempts. There is still uncertainty about more rate decreases, which is made worse by the growing price of commodities globally, especially industrial metals. As the country expects food price stability with the arrival of the Kharif crop and the impending monsoon season, proactive monitoring and interventions are important.

If you want to export or Export Bulk Agro Commodities, Tradologie.com is the best B2B platform. It facialites the bulk transactions without any middlemen through its state-of-the-art SaaS platform. Visit www.tradologie.com to explore B2B export opportunities and stay updated with the latest trends in the industry. 

To register as a buyer, click here. To register as a seller, click here

 

Image

Connect with Us


I am* Seller Buyer
Select Country
Mobile Number
Add Comment



Most Relevant

BE THE FIRST ONE TO COMMENT

Download Buyer App
Available on Android and Ios

Download Seller App
Available on Android and Ios