The government, under attack for rising prices of vegetables and pulses which had led to spiralling of food inflation during last few months, may now heave a sigh of relief as retail prices have started to soften.
Prospects of a better rabi or winter crop and government?s measures on curbing rising prices have resulted in a declining trend in prices of potato, onions and pulses.
Onion prices in various markets across Nashik, a key hub, declined by a whopping 85% to Rs 700 per quintal on Tuesday against Rs 1300 per quintal three weeks back, largely due to entry of late kharif crop into the market.
A leading trader from Nashik told FE that the wholesale prices are expected to come down further once the rabi crop start arriving from April.
Onion prices have been on boil during the last six months because decline in production due to deficient monsoon and floods Karnataka and Andhra Pradesh.
?There would be significant decline in retail prices of onion soon,? CB Holkar, president, National Horticulture Research and Development Foundation (NHRDF), said.
According to department of consumer affairs data, onion prices in the last three months have declined in all major metros. Similarly in case of potatoes, retail prices have declined by more than 55% across all metros. The decline has been particularly steep in Delhi where prices have come down by a huge 111% to Rs 9 a kg against Rs 19 per kg three months back.
?Harvesting of rabi potato crop is on in Punjab, Uttar Pradesh, West Bengal, Maharashtra and prices could decline more in the coming months,? an agriculture ministry official said.
?State governments measures against hoarding and selling of essential items through fair prices shops and prospects of bumper rabi yield have cooled down the rising trend in vegetable and pulses prices,? P K Joshi, director, Hyderabad-based National Academy of Agricultural Research Management (NAARM) said.
In case of pulses such as urad and masoor, retail prices in major cities have also started to come down significantly. In Bangalore, urad dal prices have declined by 45% to Rs 55 a kg on Tuesday from Rs 80 a kg three months back. In Delhi, masoor dal prices have come down by 16% to Rs 59 a kg from Rs 69 during the same period.
According to latest data released by ministry of agriculture, area under pulses like urad, moong, gram and lentil too has increased marginally to 140.88 lakh hectare against 132.75 lakh hectare in the same period last season.