As per a recent report by Reuters Asia, rice prices are set to rise due to weather conditions and changes in India’s farm perks that threaten supply. This comes on the heels of a surge in tomato prices in India, exacerbating inflation concerns.
Rice Prices on the Rise
Weather conditions and changes in India’s agricultural incentives are expected to impact rice supply, leading to an increase in prices. This could potentially add to the inflationary pressures already being felt in the country.
Tomato Price Surge
India has recently experienced a significant surge in tomato prices due to high temperatures, low production, and delayed rainfall. Retail prices have skyrocketed to ₹80-120 per kg, while wholesale prices have risen to ₹65-70 per kg.
Impact on Farmers and Consumers
The price hike is impacting both farmers and consumers. Earlier low prices led many farmers to abandon their fields, resulting in poor production. On the other hand, consumers are feeling the pinch as they have to pay more for these essential commodities.
While high prices may not persist, heavy rainfall in key growing areas could keep prices firm. The situation underscores the vulnerability of India’s agricultural sector to weather conditions and policy changes.
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