New Delhi: In a year when India's food grain output is seen at record highs, retail food inflation is likely to burn a hole in the pockets of consumers as a supply shortage of essential commodities is likely amid the nationwide lockdown to curb the spread of coronavirus.
India's food grain output is likely to climb to a record high of 291.95 mln tn in the current crop year that ends in June, with production of both wheat and rice--the largest grown crops in the country--seen at new highs this year.
Retail inflation in food prices, which had cooled down in February, may start rising again as consumers have started stocking up more of grocery, vegetables, and daily essentials to survive the three-week long lockdown. India's food price inflation in Consumer Price Index fell to 10.8% in February from 13.6% in January.
Prime Minister Narendra Modi announced a 21-day nation-wide lockdown effective Tuesday midnight, as positive cases of coronavirus crossed 500 in India. In retail markets of Delhi, prices of atta or flour went up to 30-32 rupees per kg from 25-27 rupees a kg about a week ago.
Prices of non-basmati rice rose to 52- 60 rupees per kg, an increase of 10-15 rupees in a week. Among pulses, prices of moong dal have risen by 10- 20 rupees per kg over the past week to 140-150 rupees in Delhi.
Prices of chana have risen by 10-20 rupees to 100-110 rupees per kg. Among vegetables, potato is being sold at 30 rupees a kg compared with 20 rupees about a week ago and onion has again climbed up 15-20 rupees in a week's time to 50 rupees per kg.
Sugar, another daily essential, has also seen a rise in price due to the panic buying. In the retail markets of Delhi, the sweetener is being sold at 37-40 rupees a kg, against 30-32 rupees a kg about a week ago. Prices of edible oils, however, have remained largely steady as most of the items sold are packaged. But retailers anticipate a tighter supply due to restrictions on movement.
Delhi had sealed borders about three to four days ago as a measure to curb the spread of COVID-19 in the city. The city currently has over 30 active cases of coronavirus and has reported a death.
