Low output of potatoes and tomatoes estimated
Robust harvests are critical this year as a global commodity price spiral has sparked a food crisis in many countries.
India’s output of vegetables and fruits, a key determinant of household food prices, is projected to rise a moderate 2.10% in 2021-22 over the previous year, with declines in the production of potatoes and tomatoes, two vegetables whose prices have always been volatile, according to official estimates released Thursday.
In its second of four annual projections, the government said total horticulture production in 2021-22 is estimated to be 341.63 million tonnes, an increase of about 7.03 million tonnes or 2.10% over 2020-21. These crops include those sown in the last fiscal year and harvested or marketed in the current one, depending on harvesting cycles.
Of the three most consumed vegetables that are prone to wild swings in prices, onion production showed an increase, while output of potatoes and tomatoes is set to dip. Robust harvests are critical this year as a global commodity price spiral has sparked a food crisis in many countries.
Onion production is estimated to be 31.70 million tonne against 26.64 million tonnes in 2020-21, a rise of 18%, which should help keep their prices stable. But potato output is set to decline 4% to 53.58 million tonnes, compared to 56.17 million tonnes in the previous year. Tomato, another volatile item, is set to drop 3% with output expected to be 20.34 million tonnes against 21.18 million tonnes in 2020-21.
India’s retail inflation eased for the second month in a row but only marginally to 7.01% in June from a year ago, official data on Tuesday showed. Consumer prices, which rose 7.04% in May, continued to breach the Reserve Bank of India’s upper limit of 6% for the sixth straight month. The keenly watched food price index leapt 7.75% on the back of a global commodity price spiral, slightly lower than 7.97% in the previous month. India is a net importer of edible oil, whose prices moderated in July after reaching record highs. However, prices of vegetables often leap, pressuring household budgets.
Overall, the data show an increase in production of fruits, vegetables and honey while a decline in spices, flowers, aromatics and plantation crops, such as tea and coffee, over the previous year.
Although a change in consumption patterns marked by rising demand for vegetables and fruits helped expand the area under horticulture over the last decade, total acreage has remained flat over the past three years at nearly 28 million hectares. India is currently the second-largest producer of vegetables and fruits in the world, after China.
“Lower production of vegetables tends to stoke prices and so any shortfall will obviously have to be met by imports or through domestic measures, such as stock limits,” said analyst Abhishek Agrawal of Comtrade.
