Calling the rise in food prices a temporary phenomenon, Economic Secretary Tarun Bajaj said on Tuesday that it is expected to return to normal soon due to the arrival of new crops and government measures to improve supply. into essential commodities.
Some products like onion, potatoes and tomatoes cost up to Rs 100 per kg, much more than the average price.
Driven by higher prices for essential kitchen items, retail inflation hit an eight-month high of 7.34 percent in September. Inflation based on the Consumer Price Index (CPI) was 6.69% in August and 3.99% in September 2019. Inflation has hovered above 4% since October 2019. The previous high for the CPI was 7.59% in January 2020.
Inflation based on the Wholesale Price Index (WPI) rose to 1.32% in September 2020, mainly due to more expensive food items.
“I think it should be temporary in our opinion … There is actually a difference between WPI and IPC. So it shows that it should be something to do with logistics and with the right farming season. coming and the news with us, we hope it should subside, ”Bajaj said.
Nonetheless, he said the agriculture and consumer ministries had also announced measures to reduce prices.
“We believe this is a temporary affair and should be back to normal soon and also limited to a few commodities,” he said.
Onion, a politically sensitive commodity, remained the most expensive in Bengaluru retail markets at Rs 100 per kg on Monday, as Karnataka is the third largest producer of kitchen staples in the country, according to data from the government.
On Monday, the average daily price of onion across India was 70 rupees per kg.
Consumers, even in large, growing regions, are paying high prices for the key kitchen item.
Although Maharashtra is the largest onion producing state in the country, the retail price of the product in Mumbai was Rs 77 per kg.