From February 28 to August 3, the past five months, the cost of everyday food items has risen sharply. February 28 was the day the US-Iran-Israel war began.
According to the Department of Consumer Affairs’ Price Monitoring System, prices of 15 out of 16 key food items increased during this period. Pulses and edible oils saw the steepest rise.
Chana dal became costlier by ₹4.65 per kg, tur (arhar) dal by ₹5.96, urad dal by ₹5.71, sugar by ₹2.25, moong dal by ₹4.55 per kg, milk by ₹3 per litre, and mustard oil by ₹7.56 per litre.
Rice prices increased by ₹1.57 per kg and salt by ₹0.85 per kg, while wheat flour (atta) recorded a marginal rise of ₹0.22 per kg.
Sugar prices have risen mainly due to sustained high demand for sugarcane for ethanol production and relatively lower sugar output.
Meanwhile, ample government wheat stocks and better market availability kept wheat prices under pressure, helping flour (atta) prices remain largely stable.
Festival season from August may push prices higher
Experts say the biggest reason behind the surge in pulse prices this year is the weak and uneven monsoon. By the end of July, the area under kharif pulses was about 7% lower than last year, raising concerns over lower production and higher imports, which pushed up market prices.
Demand for pulses and edible oils is expected to rise from August with the onset of the festive season, including Raksha Bandhan, Janmashtami, Ganesh Chaturthi, Navratri and Diwali.
If global prices and import costs do not ease, prices in both categories are likely to remain under pressure in the coming months.
Key reasons: Iran war, weak monsoon and higher global prices
According to Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings, prices of pulses and edible oils continue to face upward pressure. A weak monsoon has reduced the area under kharif sowing, raising concerns over pulse production.
At the same time, India’s heavy dependence on edible oil imports, rising international prices of palm and soybean oil, and higher import costs due to geopolitical tensions in West Asia have all contributed to the increase in prices.
