Positive Update! Food Prices Will Drop After June, According To The Finance Ministry

Delhi, New: The average person’s life is difficult every day, particularly in light of inflation and rising costs for everything from food to fuel to gasoline. There is good news if you’ve been concerned about the rising cost of food goods, particularly pulses. The Indian Meteorological Department (IMD) has forecast an above-average monsoon, which could result in a decrease in food prices by June. In light of this, the Finance Ministry has released a statement in the March 2024 edition of the Monthly Economic Review. That’s all there is to it.

Food Costs Should Drop by June, According to the Finance Ministry
As previously stated, the finance ministry said in its most recent monthly economic review that the government anticipates food prices to decline after rainfall since the India Metrological Department (IMD) has forecast an above-normal monsoon. The study went on to say that heavier rainfall than usual would result in increased agricultural yields.

According to the finance ministry’s March 2024 monthly economic assessment, “further easing of food prices is on the anvil as IMD has predicted above-normal rainfall during the monsoon season, which is likely to lead to higher production, assuming good spatial and temporal distribution of the rainfall.” Food inflation in India decreased in March from 8.7% in February to 8.5 percent. The primary reason of increased food inflation is the high cost of pulses and vegetables. The government has implemented policies to control prices, such as enforcing stock limits to discourage hoarding, fortifying buffers of essential food commodities, and conducting sporadic open market releases.

Government Talking With Up-And-Coming Global Markets
According to government officials who spoke with ANI previously, the government is discussing long-term contracts for the import of pulses with new markets, including Brazil and Argentina. Brazil will provide more than 20,000 tons of urad, while final agreements to import arhar from Argentina are virtually complete. Additionally, the government has agreements to import pulses from Tanzania, Myanmar, and Mozambique. According to recent research by CRISIL, vegetable prices are expected to decline after June. “The IMD has predicted an above-normal southwest monsoon in 2024,” the paper said. While this bodes well for vegetable prices, monsoon distribution is equally important. According to IMD, temperatures will be above average through June, which might mean higher vegetable costs in the coming months.