Surge in Prices of Essential Vegetables: Historical Context and Current Scenario

In the past month, the retail prices of essential vegetables such as tomatoes, onions, and potatoes have surged significantly, with increases ranging from 15% to 58%. The Union government has assured that this situation is temporary and that prices, except for potatoes, will stabilize soon. Wholesale prices have also seen substantial hikes: tomatoes by 65.70%, onions by 35.36%, and potatoes by 17.57% over the last 30 days.

Historical Context

Historically, the prices of essential vegetables in India have been subject to seasonal fluctuations and supply chain disruptions. For instance, in 2019, onion prices skyrocketed due to unseasonal rains that damaged crops, leading to a significant supply shortage. Similarly, the COVID-19 pandemic in 2020 disrupted supply chains, causing price volatility in essential commodities, including vegetables.

Current Price Trends

• Tomatoes: The all-India average retail price of tomatoes was ₹55.04 per kg as of the latest data, up from ₹34.73/kg a month ago, marking a 58.48% increase. Last year, the price was ₹67.57/kg on the same date. By late July and early August 2023, prices had soared to ₹250 per kg in some regions.

• Onions: The average retail price for onions was ₹42.46 per kg, a 31.09% increase from ₹32.39/kg last month. Compared to the same date last year, when the price was ₹25.04/kg, there has been a 69.57% increase.

• Potatoes: The average retail price for potatoes was ₹34.65 per kg, up from ₹29.97/kg a month ago, reflecting a 15.62% increase. Compared to last year’s price of ₹22.98/kg, there has been a 50.78% rise.

Government’s Response

The Union government has stated that the price hikes are temporary. An official from the Department of Consumer Affairs mentioned that the increase in tomato prices is seasonal and will not be as severe as last year. The second harvest of tomatoes in states like Karnataka has begun, which is expected to stabilize the supply.

For onions, the official attributed the price rise to a 40 lakh metric tonne reduction in production during the last rabi season. A good monsoon is anticipated to stabilize prices once sowing and transplantation are completed.

Regarding potatoes, the official noted that the high release rate from cold storage units has contributed to the price increase. While prices may decrease slightly in the coming days, they will remain higher than last year but will be regulated. The demand for potatoes typically peaks during the summer and is expected to decline as green vegetables become more available during the monsoon season.

Summary

• Retail prices of tomatoes, onions, and potatoes have increased by 15% to 58% in the past month.
• Wholesale prices have also surged: tomatoes by 65.70%, onions by 35.36%, and potatoes by 17.57%.
• Historical context: Seasonal fluctuations and supply chain disruptions have historically affected vegetable prices in India.
• Current prices:
  • Tomatoes: ₹55.04/kg (up 58.48% from last month)
  • Onions: ₹42.46/kg (up 31.09% from last month)
  • Potatoes: ₹34.65/kg (up 15.62% from last month)
• Government’s response: The price hikes are temporary, with expectations of stabilization for tomatoes and onions soon. Potato prices will remain elevated but regulated.
• Factors: Seasonal changes, reduced production, and high release rates from cold storage units are contributing to the price increases.