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Rain, lockdown push vegetable prices up across the country

Rains and partial or complete lockdown in cities such as Bangalore, Pune, Guwahati and Bhopal to contain the spread of Covid-19, have upended supply chains, causing prices of commonly consumed vegetables to spike manifold.

Updated on: Jul 23, 2020 03:51 AM IST
Hindustan Times, New Delhi | By
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Prices of commonly consumed vegetables, such as potatoes and tomatoes, have risen sharply across the country, with major wholesale markets running low on supplies due to disruptions caused heavy rains and lockdowns, apart from lower output of some items and higher fuel costs.

People buy vegetables from Wadgaonsheri vegetable market ahead of lockdown in Pune. (Shankar Narayan/HT PHOTO)
People buy vegetables from Wadgaonsheri vegetable market ahead of lockdown in Pune. (Shankar Narayan/HT PHOTO)

On Tuesday, the average all-India retail price of potatoes stood at Rs 35 a kg, while tomatoes were selling for an average of Rs 55 a kg, up from Rs 20 and Rs 30 on July 1, data from the consumer affairs ministry showed.

Rains and partial or complete lockdown in cities such as Bangalore, Pune, Guwahati and Bhopal to contain the spread of Covid-19, have upended supply chains, causing prices of commonly consumed vegetables to spike manifold. Among kitchen staples, households are paying the highest for potatoes and tomatoes. Onion prices are stable or have fallen in some markets due to higher production last winter, officials in wholesale markets said.

A combination of factors is behind the rising prices, traders said. “Farmers in many states dumped perishables during the lockdown, unable to find buyers. So, tomatoes are in short supply. Transportation costs have risen 5-10% because of fuel price hikes by the government,” Maruti Mallale, the proprietor of Mahesh Vegetable Company at Maharashtra’s Vashi said.

“Supply of most of the vegetables has been affected. Arrivals in cold storage have been 30% less,” said Anil Chaudhury, an official of Agra Cold Storage Association. This suggests that farmers have grown less potato during 2019-20, he said. Onion prices, on the other hand, have declined. Average prices of onions in the Azadpur market fell 20.9% in the July 13-19 week.

 
ABOUT THE AUTHOR
Zia Haq

Zia Haq reports on public policy, economy and agriculture. Particularly interested in development economics and growth theories.

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