Will the burden of inflation increase further in the coming days? Know what experts say - Newztezz Online


Friday, August 18, 2023

Will the burden of inflation increase further in the coming days? Know what experts say

Agriculture in India is still based on rain. In many states, paddy is irrigated only with rain water. If the rainfall is less than the average, then the production of rice will be affected.

There is hue and cry in the country due to inflation. The process of increase in retail inflation which started from June is still continuing. Even now the prices of food items in the retail market are high. Especially the prices of tomatoes in the retail market are still higher than in the month of May. According to a report, inflation in the country from June to July troubled the general public a lot. During this period, the price of vegetables registered a jump of 37 percent, while the rate of spices increased by 21 percent. Due to this, along with green vegetables, spices have also become more expensive.

At the same time, experts now say that there is no hope for the general public to get relief from inflation. There may be a further increase in the price of food items in the coming days. Due to this, pulses, rice, wheat, flour, potatoes, onions and green vegetables will become expensive. JP Morgan's Global Head-EM Economics Jahangir Aziz told CNBC-TV18 during an interview that the threat of El Nino has increased in the country. Many states have received less than average rainfall in August. This will affect the production of kharif crops along with horticulture, which will have a direct impact on inflation. At the same time, NITI Aayog member and agricultural economist Ramesh Chand also believes in the same way.

Rice will become more expensive

Addressing the media on Sunday, the India Meteorological Department had said that despite receiving 5 percent more rainfall than the average in July, the monsoon weakened by August. In such a situation, there was a decline of 2 percent in the average rainfall in the entire country this month. If the behavior of monsoon continues like this, then the possibility of decline in production especially of rice will increase. Because rice crop needs a lot of water. If the production of paddy decreases, then rice will become more expensive.

The price of rice recorded an increase of 2.8 percent.

However, an increase of 2.8 percent has been recorded in the price of rice in the month of July alone, while the central government has banned the export of non-basmati rice to put a brake on inflation. At the same time, to reduce the price of flour, the central government is considering exporting wheat from Russia. If the weather does not cooperate in such a situation, then even the government cannot stop the rise in inflation.

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