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High food prices hurting poor amid Covid-19 crisis

| Nov 14, 2020, 11:38:48 AM | TOI.in
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India’s retail inflation may stay elevated for at least three more months after hitting a six-year high in October, as excess rain has damaged standing crops and seedlings, while edible oils that the country imports have become expensive. The high prices are a particular cause of concern for hundreds of millions of poor people, who have already been squeezed by the coronavirus pandemic and its impact on an economy that contracted a record 23.9% in April-June. Food items such as onions, potatoes, eggs, meat and tomatoes have a nearly 46% weight in the retail inflation basket. Food inflation shot up to 11.07% in October, the highest in nine months according to data released on Thursday, sending overall retail inflation surging to 7.61%. 'We were expecting a hefty correction in vegetable prices but just before harvesting, excessive rainfall damaged crops,' said a vegetable trader based in the western state of Maharashtra that dominates India’s onion and oilseeds production. Parts of India’s richest state was battered by untimely rain last month. 'Many farmers are having to prepare seedlings again for planting and this will delay supplies from the new season crop,' the vegetable trader said.

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