Rain Fuels Onion, Potato Price Hikes in Mumbai, Chennai; Delhi, Ranchi Get Cheaper Vegetables

Customers in some parts of the country like Mumbai and Chennai, are shelling out more on some vegetables and fruits because of the rains.

On an average, key vegetables such as potatoes, onions and tomatoes saw a spike in cities such as Mumbai and Chennai because of the rains, while cities such as Delhi and Ranchi saw relatively lower prices, according to high frequency data by the department of consumer affairs.

While prices of potatoes are retailing at about Rs 34-35 per kg in Mumbai and Chennai, while selling at Rs 18-20 per kg in Delhi, Ranchi and Kolkata.

In case of onions too, average retail prices trended higher in Mumbai and Chennai at over Rs 30 per kg, while Kolkata and Delhi saw prices trend at about Rs 25 per kg and closer to the national retail average.

Tomatoes saw prices trend higher in Mumbai and Kolkata at Rs 36 and Rs 42 per kg, while Chennai and Delhi saw prices at Rs 20-22 per kg.

Still, prices of key vegetables were lower compared to an year ago.

Potatoes, onions and tomatoes occupy the highest weightage among vegetables, making up for 0.98%, 0.64% and 0.57% of the CPI basket.

The macro outlook remains benign. India's retail inflation has slipped to its lowest since July 2019, moderating to 3.2% in April annually, led by vegetable inflation contracting by 11%.