Page 7 - Food Inflation

Govt hopeful of 'bountiful harvest' amid food inflation headwinds

With India's farm sector remaining resilient to erratic weather conditions, the government is hopeful of having bountiful food grain production even as it tries hard to keep a lid on food inflation ahead of general elections in 2024. From floods to droughts, extreme weather events this year have not only raised fears over foodgrain production but also created an artificial supply scare that forced the government to take a slew of pre-emptive measures, including export curbs on certain commodities. Besides, the government subsidised the sale of a few commodities to improve domestic supply and arrest the sharp spikes in retail prices of wheat, rice, edible oils, pulses, tomato, and onion. While the efforts to control food prices are still on, the government is closely watching the prospects of rabi (winter) crops, especially wheat and pulses, which are sown now and will be ready for harvest closer to 2024 general elections in April-May. Food inflation remained at an elevated level ..

Consumers find relief from boiling oil prices in 2023 even after CPI rises

According to data by Bizom, prices of edible oils ranged from a fall of 13.3 per cent to 30.2 per cent in November this year compared to last year

Inflation to ease to 4.6% in the first three quarters of 2024-25: RBI

The RBI bulletin released on Wednesday said that global growth continues to remain fragile and may slow down further in 2024

Rice inflation: FCI chief appeals traders to buy grain under OMSS

Expressing concern over rice inflation, FCI chief Ashok K Meena on Friday asserted that the PDS rice is of "extremely" good quality and urged traders to buy the grain under the Open Market Sale Scheme (OMSS) to boost domestic availability and contain price rise. To encourage more participation of rice traders and processors under the OMSS, the Food Corporation of India (FCI) on Friday increased the bid quantity to 2,000 tonnes per bidder from 1,000 tonnes and the minimum bid quantity was reduced to 1 tonne from 10 tonnes, he said. The positive response received for wheat sales under the OMSS has helped keep wheat and atta prices under check. In the case of rice, the offtake of grain has not been much, so far, under the scheme, he added. Briefing media, FCI Chairman and Managing Director Meena said, "Rice inflation data is slightly a concern. It is at 13 per cent year-on-year, which is a cause of worry. That's why we are selling rice under the OMSS". However, rice sale has been only

IIP surges 11.7% in October; retail Inflation jumps to 5.55% in November

IIP surges 11.7% in Oct; uptick in food prices lifts retail inflation to 5.55% in Nov

India's GDP growth may slow down to 6.5% in FY25: Axis Bank report

Mishra also said that the Reserve Bank is unlikely to cut its repo rate through the calendar year 2024 due to volatile food inflation

Centre imposes ban on onion exports until March 2024 to curb price surge

India had previously imposed a minimum export price of $800 per metric ton, until Dec. 31, 2023, to discourage exports, in an effort to curb surging local prices

Erratic rainfall, festive demand raised cost of veg thali 10% in November

The cost of a non-veg thali jumped 5% in November as compared to October: CRISIL's Roti Rice Rate index

S&P Global, Morgan Stanley peg India's GDP growth at 6.4% in 2024

Those at Goldman Sachs, on the other hand, see the Indian economy growing a tad lower at 6.3 per cent in the year ahead.

Food inflation sole threat to 4% CPI target: RBI 'State of Economy' report

The headline inflation had risen to a 15-month high of 7.44 per cent in July due to a surge in retail prices of vegetables, particularly tomatoes

Food inflation remains above comfort level, despite easing of CPI: Official

Food inflation, which accounts for nearly half of the overall consumer price basket, was 6.61% in October

Retail inflation falls again in October, hits 5-month low of 4.87%

Food inflation remained sticky as it slightly moderated to 6.61 per cent in October from 6.62 per cent in September due to the prices of items within the category cancelling each other out

22% kirana owners extremely optimistic about business this festive season

The survey, conducted among 5,000 kirana owners across the country, showed that 22 per cent of kirana owners in India are feeling "extremely optimistic" about business prospects this festive season

Tomatoes, onions and potatoes: Why veggie inflation is shooting up again

Climate shocks apart, demand-supply mismatches cause price spikes in veggies led by tomato, onion and potato

Rural recovery for FMCG cos takes a pause amid food inflation, uneven rains

The FMCG industry has witnessed a challenging September quarter amid subdued consumer demand and a decline in rural consumption due to persistent food inflation and uneven rains in some regions. The operating environment remained tough for the FMCG (Fast Moving Consumer Goods) industry as rural demand continues to be sluggish, and some green shoots, which were visible in the preceding June quarter, seem to have paused following adverse conditions. Leading FMCG makers like HUL, ITC and Nestle have expressed concerns over uneven rains, the impact of crop output and rising prices of some commodities -- such as wheat, maida, sugar, potato, coffee, etc -- in their September quarter earnings. "Consumption demand has been relatively subdued, especially in the value segment and rural markets on the back of sub-par monsoons and persistent Food inflation, which saw a sharp spike during the quarter," ITC said in an earning statement. Persistent inflation has impacted rural demand, which ...

Food prices to remain stable during festival season, says food secretary

The government has recently used all tools at its command, whether trade policy or stock limit norms. These tools have been used judiciously to ensure prices remain stable, Chopra noted

20% export duty woes: Parboiled rice exports fall over 80% in a month

Duty woes: Basmati rice exports down 30% from Aug 25 to Sep 20

Economy gaining strength, inflation to slide further in Sept: RBI report

India's retail inflation, which softened in August from the previous month's peak, is expected to trend down further in September, it said

Aug retail inflation eases to 6.83%; IIP growth for July comes at 5.7%

Rural inflation was on the higher side at 7.02 per cent, compared to urban inflation at 6.59 per cent in August

Is India overestimating inflation as it is skewed to food and beverages?

The work on appropriate weights of various items could be completed once the household consumption expenditure survey is out