The government of India has highlighted the rising food inflation in the country, which has remained persistently high for the past two years, despite the global trend of stable or declining food prices.
According to the latest Economic Survey, frequent extreme weather events are playing a significant role in driving this inflation.
The report, tabled in Parliament, noted that the disruption of food supply chains and the decline in production of essential crops, like onions and tomatoes, have contributed to the ongoing price hikes.
The Economic Survey specifically pointed to the damage caused by extreme weather events in major horticultural states during the 2023-24 period. These weather conditions led to inflationary pressure on horticultural commodities, further exacerbating the rise in food prices.
Over the past two years, India’s food inflation rate has remained elevated, contrasting with the global trend of declining food prices. The government attributes this divergence to supply chain disruptions caused by extreme weather, coupled with a reduction in the harvest of certain key food items.
The report also referenced data from the Centre for Science and Environment (CSE), which revealed that the extent of crop damage in 2024 was higher than in previous years, mainly due to adverse weather conditions.
The India Meteorological Department (IMD) corroborated these findings, reporting a marked increase in the frequency of extreme weather events in recent years. For instance, heatwaves were recorded on 18 percent of days between 2022 and 2024, in stark contrast to just 5 percent in 2020 and 2021.
These extreme weather events have had a cascading effect on the country’s food production, especially in areas reliant on seasonal crops. The government also noted that recent shocks, such as geopolitical conflicts and adverse weather, had initially caused price fluctuations.
However, their impact appears to have subsided, leading to more variability in commodity prices. This increased fluctuation in food prices is of particular concern, as it adds to the financial burden on consumers, particularly in a country where food insecurity remains a critical issue for many.
In light of these challenges, the Economic Survey recommended measures to ensure long-term price stability. One such recommendation was the development of climate-resilient crops that can withstand extreme weather conditions, thus reducing the risk of crop damage.
The government also stressed the importance of strengthening data systems to monitor prices effectively, in order to better predict and manage fluctuations. Additionally, reducing post-harvest losses was identified as a key strategy to mitigate the impact of weather-related crop damage.
In response to the ongoing food inflation and its effect on domestic prices, the government recently announced a six-year mission aimed at boosting pulse production.
This initiative is part of the effort to achieve self-sufficiency in three widely consumed varieties of pulses – tur, urad, and masoor. By increasing domestic production, the government hopes to reduce dependence on imports and stabilise pulse prices, which have seen considerable fluctuations in recent years.