Economic Survey 2023-24: Extreme weather and crop damage led to hike in food prices over the past two years
The Hindu
Government's Economic Survey 2023-24 reports extreme weather, crop damage, and lower reservoir levels leading to higher food prices.
Extreme weather, lower reservoir levels and crop damage have affected farm output and led to higher food prices over the past two years, the Economic Survey 2023-24 said on July 22.
Unfavourable weather conditions particularly impacted the production prospects of vegetables and pulses, it said.
"In FY23 and FY24, the agriculture sector was affected by extreme weather events, lower reservoir levels, and damaged crops that adversely affected farm output and food prices. So, food inflation based on the Consumer Food Price Index (CFPI) increased from 3.8% in FY22 to 6.6% in FY23 and further to 7.5% in FY24," read the consolidated report on the state of the economy in the previous year.
Read here the full Economic Survey 2023-24
Food inflation has been a global phenomenon in the last two years. Research, the government said, indicates the rising vulnerability of food prices to climate change –heat waves, uneven monsoon distribution, unseasonal rainfall, hailstorms, torrential rainfall, and historic dry conditions.
According to the Economic Survey, tomato prices surged in July 2023 due to seasonal changes, region-specific crop diseases such as white fly infestation, the early arrival of monsoonal rain in the northern part of the country, and logistics disruptions in isolated areas due to heavy rainfall.
The spike in onion prices was attributed to several factors, including rainfall during the last harvesting season affecting the quality of rabi onions, delays in sowing during the kharif season, prolonged dry spells impacting kharif production, and trade-related measures taken by other countries.