Extreme weather conditions are not just affecting electricity bills but are also causing a hike in vegetable prices, which have been a dominant factor in retail inflation for an extended period. Crisil's recent report emphasized the increased recurrence and intensity of weather disturbances, resulting in frequent fluctuations in vegetable prices in recent years. The report stressed the importance of mitigating climate risks to stabilize vegetable production and prices.
Vegetables played a significant role in food inflation in the fiscal year 2024, accounting for about 30% of it, much higher than their 15.5% share in the food index. Not limited to tomatoes and onions, other vegetables like garlic, ginger, brinjal, parwal, and beans also experienced a notable surge in inflation rates, with figures reaching triple digits in some cases. The fiscal year 2024 witnessed substantial volatility in vegetable prices, ranging from a low of -7.9% to a high of 37.4%, showcasing the challenges faced in the market.