Bottle gourd, ridge gourd, cucumber prices set to double after tomato surge: Farmers

After tomatoes, the prices of various vegetables are expected to double. In a significant setback for the agricultural sector and the consumer market, the future of bottle gourd, ridge gourd, cucumber, and apple gourd crops hang in the balance due to the heavy rains and devastating floods in North India.

These plants are currently in the crucial fruiting phase. While some individual farmers have managed to salvage their harvests through meticulous care, a grim tale of devastation unfolds on a larger scale.

"As farmers at the grassroots level are somehow managing to protect their crops, ensuring the survival of their yield, large-scale producers have made a harrowing decision to abandon their fields altogether. This has resulted in a staggering 100 per cent crop loss," said Dushyant Naagar of Kisan Sangharsh Samiti. "The consequences are dire, with the entire harvest rendered futile, leaving farmers grappling with substantial financial losses," he further added.

The repercussions of this are bound to be felt in the consumer market, particularly in the pricing of essential vegetables. Amongst the worst-hit crops are tomatoes, okra, cucumber and bottle guard are expected to experience an alarming surge in prices. Industry experts predict that the rates of these vegetables are poised to double, adding further strain to the already burdened consumers.

"A decline in the supply of these vegetables threatens food security, dietary diversity, and the livelihoods of farmers who heavily depend on their cultivation. As the agricultural sector grapples with this distressing situation, stakeholders, policymakers, and relevant authorities are urged to collaborate and implement strategies to mitigate the impact, stabilise prices, and support affected farmers," Naagar asserted.

Surge in vegetable prices is causing food inflation | Image credit: Unsplash

Soaring vegetable prices drive food inflation

The month of June witnessed a surge in food inflation, climbing from 3.3 per cent to 4.6 per cent, primarily driven by the persistent hike in vegetable prices.

A significant portion of the overall inflation is now attributed to food, with its share increasing from 36 per cent to 44 per cent in the past month. The surge in vegetable prices can be largely attributed to the erratic monsoon that has affected several parts of the country, including floods in some regions of North India. While price hikes for vegetables during the monsoon season are not uncommon, this year's situation is particularly dire, according to vendors.

The sudden spike in prices has led to conflicts erupting in wholesale markets where vegetables and fruits are sold. People are now compelled to allocate more of their household budgets to purchasing vegetables, resulting in a decrease in consumption.

Small businesses, particularly roadside eateries and eateries in cities, are also grappling with the consequences of exorbitant vegetable costs. Members of Kisan sangharsh samiti also voiced concerns about potential losses, as the surge in prices makes it difficult to procure quality vegetables, consequently squeezing profit margins.

"This alarming situation needs an immediate attention and support from the concerned authorities. Affected farmers need to be to aid and should ensure the availability of these vegetables at reasonable prices," said Raj Yadav, Founder and CEO, Gramik.

RBI's inflation target

The uncontrolled rise in prices poses a serious threat to the inflation target set by the Reserve Bank of India (RBI). The RBI aims to keep consumer price index (CPI) inflation below the upper tolerance limit of 6 per cent. Currently, India's retail inflation stood at 4.81 per cent in June, according to the latest available data.

However, a recent report by the State Bank of India (SBI) suggests that this situation may not last. The SBI's Ecowrap report for July warned that if tomato prices continue to increase without a substantial change in potato and onion prices, average inflation in Q2 FY24 could reach 5.8 per cent year-on-year. Rising prices of tomatoes, onions, and potatoes, which are staples in Indian kitchens, could become a cause for concern.