Price Rise: 29% Households Reduce Buying Vegetables As Food Inflation Soars, Says Survey

A recent survey has revealed that rising prices of vegetables and essentials are majorly impacting Indian households, with 1 in 2 families now paying over Rs 75 per kg for tomatoes, Rs 50+ per kg for onions, and Rs 40+ per kg for potatoes.

According to the survey by LocalCircles, 29% of respondents said they have maintained their consumption levels but are sourcing produce from vendors offering lower prices, reported Zee Business.

The sharp increase in vegetable prices across most cities is attributed to supply disruptions and damage to various crops. While the summer monsoon has concluded, adequate supplies of key crops such as onions, tomatoes, and green leafy vegetables have not reached wholesale markets, resulting in unusually high prices in retail markets.

In response, the central government, through state-owned organisations, is providing subsidised onions in cities like Delhi to alleviate some of the burden on households.

A report by Crisil Ltd highlighted that the cost of a home-cooked vegetarian thali increased by 11% year-on-year (y-o-y) in September, driven primarily by the rising cost of vegetables.

According to the report, "The rise in the vegetarian meal cost can be attributed to sharp increases in the prices of key vegetables, including onion, potato, and tomato, which account for around 37% of the cost."

Crisil further noted, "Vegetable prices displayed mixed trends in September. Onion prices surged by 53%, potatoes by 50%, and tomatoes by 18% on-year due to lower onion and potato arrivals and heavy rainfall impacting tomato output in Andhra Pradesh and Maharashtra."

The LocalCircles survey garnered over 40,000 responses from households across 351 districts in India. Of the respondents, 63% were men and 37 per cent were women. Additionally, 40% of participants were from Tier 1 cities, 7% from Tier 2, and 33% from Tier 3 cities.

Retail inflation in September, based on the All-India Consumer Price Index (CPI), rose to 5.49%, marking a nine-month high due to rising food prices. This is the highest inflation rate since December 2023, when it reached 5.69 per cent. In contrast, the inflation rate in August was 3.65%.

Food inflation, which constitutes half of the CPI basket, increased to 9.24% annually, compared to a 5.66% rise in August.

It was recorded at 5.42% in July, 9.36% in June, 8.69% in May, and 8.70% in April, according to the Ministry of Statistics and Programme Implementation (MoSPI).