Food Inflation At Alarming Levels

New Delhi: India needs to develop climate-resilient crop varieties and enhance yields to increase the production of pulses, oilseeds, tomatoes and onion to ensure long-term price stability, the Economic Survey 2024-25 on Friday said amid persisting concerns over food inflation.

The survey, tabled by Finance Minister Nirmala Sitharaman on Friday in Parliament, emphasised that India’s food inflation rate has remained firm, driven by a few food items like vegetables and pulses. The contribution of vegetables and pulses to the overall inflation stood at 32.3 per cent in 2024-25 (April to December).

When these items are excluded, the average food inflation rate for FY25 (April-December) was 4.3 per cent, which is 4.1 per cent lower than the overall food inflation, the survey said. It also underlined that extreme weather conditions -- such as cyclones, heavy rains, floods, thunderstorms, hailstorms, and droughts -- impact vegetable production and prices.

These adverse weather conditions also present significant challenges to storage and transportation, resulting in temporary disruptions to the supply chain and causing an increase in vegetable prices, it added.