{"id":37429,"date":"2025-04-21T04:44:20","date_gmt":"2025-04-21T04:44:20","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/37429\/"},"modified":"2025-04-21T04:44:20","modified_gmt":"2025-04-21T04:44:20","slug":"weather-hit-veggies-and-fruit-put-food-inflation-on-the-boil-in-fy25","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/37429\/","title":{"rendered":"Weather-hit veggies and fruit put food inflation on the boil in FY25"},"content":{"rendered":"

From coconuts and garlic to potatoes and onions, soaring fruit and vegetable prices<\/a> in FY25 drove up household grocery bills, accounting for over half of last year’s food inflation<\/a>, as extreme weather disrupted supplies.<\/p>\n

Vegetables alone contributed 43.7% to the food inflation basket in FY25, up from 30.8% in FY24, while the share of fruits rose to 8.3% from 5.1%, according to an ET analysis.<\/p>\n

Their high contribution meant food inflation eased only marginally to 7.3% in FY25 from 7.5% in FY24, even as overall inflation dropped more – to 4.6% from 5.4% – during this period.
“Climate change affected supplies in FY25, especially for vegetables and fruits, due to erratic rainfall patterns,” said Paras Jasrai, associate director at India Ratings and Research (Ind-Ra).
\"graph\"
Madan Sabnavis, chief economist at Bank of Baroda<\/a>, pointed out that fruits and vegetables are sensitive to adverse weather conditions like extreme heat and heavy rainfall.
\"ETLive Events
Vegetable inflation averaged 19.4% in FY25 compared to 14.9% in FY24. Among vegetables, garlic recorded the highest 55.4% inflation in FY25, followed by potato (53.3%), onion (37.4%), and lemon (21.2%). Tomato inflation was at 18.8%.Among fruits, coconut saw the sharpest increase of 21.4%, followed by pineapple (13.5%), guava (13.3%), and green coconut (12.2%).”The sporadic nature of rain impacted the southern region, which is a key producing area for coconut,” Jasrai said. <\/p>\n

Sabnavis pointed out that transportation costs also increased last fiscal, adding to inflation, “not due to fuel prices, but due to overall logistics cost increases.” <\/p>\n

Cereals and products were the second largest contributor to food inflation at 23.7% in FY25, though this was down from 33.3% in FY24.<\/p>\n

Out of 10 sub-groups in the consumer price food index, six recorded a decline in their contribution.<\/p>\n

Notably, spices contribution dropped to -3.6% in FY25 from 18.4% in FY24; milk to 6.4% from 14.4%; and pulses to 7.2% from 12%.<\/p>\n

In contrast, oils and fats saw a rebound. Despite deflation trends, their contribution climbed to 5.9% in FY25 from -19.8% in FY24.<\/p>\n

Sabnavis attributed this to international price trends and rupee depreciation. “Global edible oil prices rose, and the rupee’s 4-5% depreciation also played a role,” he said.<\/p>\n

Inflation in edible oil rose to 5.5% in FY25 from -14.8% in FY24.<\/p>\n

Benign outlook
Jasrai expects the situation to improve as global commodities prices are easing, which will gradually have an impact on the overall oil and fats situation in FY26.<\/p>\n

Last week, the Indian Meteorological Department (IMD) forecasted above-normal monsoon rainfall for 2025, a positive signal for the agriculture sector. “With a high base from FY25 and a favourable monsoon forecast, we anticipate some relief in food inflation in FY26,” Jasrai said.<\/p>\n","protected":false},"excerpt":{"rendered":"From coconuts and garlic to potatoes and onions, soaring fruit and vegetable prices in FY25 drove up household…\n","protected":false},"author":2,"featured_media":37430,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[21506,51,1700,21509,21508,21511,21507,16,15,21510],"class_list":{"0":"post-37429","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-bank-of-baroda","9":"tag-business","10":"tag-economy","11":"tag-food-inflation","12":"tag-food-prices","13":"tag-fruit-prices","14":"tag-india-inflation","15":"tag-uk","16":"tag-united-kingdom","17":"tag-vegetable-prices"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114374132600737845","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/37429","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=37429"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/37429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/37430"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=37429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=37429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=37429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}