As extreme weather conditions continue to wreak havoc across the globe, their impact is not limited to electricity bills but is significantly felt in the realm of food prices, particularly vegetables.
A recent report by Crisil has shed light on the escalating intensity and recurrence of weather disturbances, contributing to volatile vegetable prices and rising retail inflation for over a year now.
Highlighting the mounting climate risks, Crisil emphasized the urgent need to mitigate these impacts on vegetable production and prices.
According to the report, vegetables accounted for approximately 30% of food inflation in FY24, a stark contrast to their 15.5% share in the food index.
The surge in vegetable prices, which has garnered considerable attention, extends beyond well-known staples like tomatoes and onions. Garlic and ginger, for instance, witnessed triple-digit inflation rates of 117.8% and 110.4%, respectively, signaling a broader issue across various vegetable categories.
Crisil attributed this volatility to a confluence of factors, including warmer weather patterns, erratic rainfall, and pest infestations.
These disturbances disrupted the typical seasonal fluctuations in vegetable prices, leading to an unprecedented surge in average vegetable inflation for the fiscal year.
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