Costlier fruit, milk and onion helped push India?s food inflation for the week ended June 11 to 9.13% from the previous week?s figure of 8.96. Analysts attribute the fluctuation in the food price levels to the lack of a long-term policy on key agricultural crops and dairy industry.
Fruit and milk became dearer by 28.66% and 15.30% respectively, followed by onion (11.89%), egg, meat and fish (10.56%), cereals (4.32%) and potato (0.71%).Prices of pulses, wheat and vegetables fell by 10.34%, 1% and 9.27% respectively. ?The government needs to put in place a long-term strategy to augment production of food grains, pulses and milk so that volatility in food inflation could be reduced,? BC Barah, agricultural economist and Nabard chair professor told FE. The latest data follow met department?s cautious forecast that monsoon rains are expected to be just below normal at 95% of the Long Period Average.
FE on Thursday reported that comfortable stocks and less-than harsh summer months this year have ensured stability in prices of rice, wheat, potato, onion and tomato across major cities in the country. Usually, prices go up during summer months because of supply constraints. An FE analysis of retail price data of these five key agricultural commodities during last two months from the department of consumer affairs indicate that most prices been stable in key cities, with tomato prices falling to a record low.
?In expectation of reasonable monsoons rains, those holding on to stocks of onion and potato are releasing them in the market resulting in price stability in the market,? said PK Joshi, senior programme coordinator, International Food Policy Research Institute.