Inflation To Hit Households: Tomato has created havoc across the country. Along with petrol-diesel, the price of tomato has also cut the side of apple. For the common people, the sight of tomato from a distance has become enough. Now the echo of tomato price has started echoing even in the ministry of Modi government. Although there is still no relief in tomato prices, the El Nino effect has increased people’s worries.
Apart from tomato, the rise in prices of chillies, cumin, ginger, arhar dal and urad dal has similarly emptied the pockets of the common man. The increase in the price of tomatoes has also increased the concern of the finance ministry. The Annual Economic Review released by the Finance Ministry’s Economic Department for the financial year 2022-23 has clearly written that prices of some vegetables such as tomatoes have been under pressure due to domestic factors such as unseasonal rains.
The finance ministry has said in this report that even after the wholesale inflation rate has come down due to the effect of El Nino, consumers have to bear the brunt of its impact on retail prices. According to the Ministry of Food and Consumer Affairs, tomatoes were selling at Rs 120 per kg in Delhi, Rs 140 in Gurugram, Rs 152 in Kolkata and Rs 120 in Patna on July 6.
The finance ministry said in its report that inflation in the second half of the financial year 2022-23 is due to an improvement in the global supply chain, policy decisions of the government and tightening of RBI’s monetary policy. But due to unseasonal rains, prices of some vegetables including tomatoes are increasing.
The report expressed concern that the impact on domestic food prices due to El Nino and the lack of reduction in retail prices despite the fall in wholesale prices may lead to high inflation. Global tensions, turmoil in the global financial system, decline in global stock markets, El Nino effect and weak global demand could affect the pace of growth, the report said.
While the Finance Ministry said in its monthly economic report, economic growth in 2022-23 is expected to be 7.2 per cent on the back of a strong fourth quarter, up from the February 2023 estimate of 7 per cent.
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