The recent drop in retail food inflation to 5.42% in July, down from 9.36% in June, appears to be a positive development on paper. The Consumer Food Price Index’s rise of 2.81% in July, compared to 4.49% in June, further suggests that inflationary pressures might be easing. These statistics theoretically signal an improvement in the inflationary scenario. However, a closer examination reveals a more troubling reality. Pulses and cereals, essential staples in the Indian diet, continue to experience significant inflation, putting a strain on household budgets. The vegetable sector, which saw its inflation rate fall to 6.8% in July from an alarming 29.3% in June, still presents challenges. Despite the decline, the base was so high that the reduction in prices has yet to provide substantial relief to the consumers. Vegetables, crucial for balanced nutrition, are particularly significant in India, as evidenced by political turmoil over onion prices in the past. It even led to the fall of a government in Delhi.
The surge in prices during June and July was largely due to disruptions in the supply chain caused by heavy rains, impacting the movement of goods. Consequently, vegetables have become less accessible, especially to the economically weaker sections of society. With pulse prices also remaining prohibitively high, many are left with limited dietary options, often resorting to a diet consisting primarily of salt and green chilli. Dal-roti is no longer a combination for them. This situation highlights a stark reality: a considerable segment of the population struggles to access protein- and mineral-rich foods. The government must recognise and address this issue urgently, ensuring that food security and nutritional needs are met for all, especially the most vulnerable. Ignoring this reality could exacerbate the plight of those already facing significant hardships.
