Inflation: Ginger caught fire after tomato-onion, Finance Ministry said inflation will come down only after new crop arrives

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inflation: After the increase in the prices of tomato and onion, now the price of ginger has become hot. Along with this, the prices of green chillies and garlic have also increased. The price of ginger has reached Rs 280 per kg in the market. The rains in July last week had a bad effect on ginger production in many states. It has become difficult for traders to supply ginger in sufficient quantity. Traders also complain that ginger spoils quickly. If not stored properly, it spoils within a week. As a result, the price of ginger shot up.

Retail traders say that we sold good quality ginger in the wholesale market at Rs 80 per kg in May. Now even after paying Rs 250 per kg, we are not getting the same quality ginger. Ginger spoils in wet conditions and its production is generally reduced during the rainy season. Similar is the condition of chilli and garlic in the market. However, it is being told that by next month a new crop of chillies will start coming in the market. Whereas, for the new crop of garlic, we will have to wait a bit.

Inflation in food items is likely to be temporary as the government’s precautionary measures and arrival of fresh crops will ease prices, the finance ministry said on Tuesday. However, global uncertainty and domestic disruptions may increase inflationary pressures in the coming months. In its monthly economic review for July, the ministry said growth is expected to continue on the back of domestic consumption and investment demand going forward. Private investment is now increasing due to increased provision for capital expenditure by the government in the current financial year. Retail inflation based on the Consumer Price Index reached a 15-month high of 7.44 per cent in July 2023. However, core inflation remained at a 39-month low of 4.9 per cent.

The ministry said that the price of cereals, pulses and vegetables saw a double-digit increase in July compared to the same period last year. Disruption in domestic production also increased the pressure on inflation. According to the Monthly Economic Review, the government has already taken precautionary measures to control food inflation, due to which the price pressure in the market is likely to ease soon with the arrival of fresh stocks. Price pressure in food items is expected to be temporary. Food inflation remained high in July 2023 due to abnormal increase in prices of certain specific items, as prices of items such as tomato, green chillies, ginger and garlic rose by more than 50 per cent, the ministry said.

,with language input,

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