Vegetable, oil price rise: Weak monsoon, intense heat burn holes in “aam aadmi’s” pocket

Owing to intense heat and forecast of deficient monsoon in India, prices of vegetables, edible oil have surged 5-10% in the past month, an Economic Times report revealed.

In the month under review, the prices of onion, tomato and lady's finger registered a rise of 30-50%. Vegetable traders believe that if the monsoon does not gain momentum, the situation may deteriorate further.

Shriram Gadhave, president, All India Vegetable Growers Association, told the ET, "The water table in most vegetable growing areas is yet to deplete. But if these areas do not get two to three heavy showers by the third week of June, production will be affected, and prices may move northwards."

The chicken lovers are also bearing the burnt of the rising prices. In the past two weeks, the heat wave that is sweeping India has killed nearly 2.4 crore birds. As a result of which chicken prices have gone 25-30% up. Poultry experts believe that the prices may shoot further if the mercury continues to rise.

The financial daily also mentioned that prices of cooking oil, which a main ingredient in Indian kitchens, have also rised in May by 8-9% globally. Surprisingly, Indian cooking oil companies haven't changed the prices yet.

According to Angshu Mallick, chief operating officer, Adani Wilmar, which sells consumer packs under the brand name Fortune, "Consumer pack demand has shrunk in rural India by 2% in the past month. If it does not rain by June 25, then rural demand may reduce further. We are, therefore, holding back our decision to increase prices." (Image: static.genspot.com)