The food price index jumped 11.43 per cent for the week ending October 15,over the corresponding week last year,on the back of spiralling vegetable and fruit prices. Green vegetables have seen the sharpest rise,hit by supply-chain problems during Dussehra. The index had risen 10.6 per cent the previous week. This double-digit inflation comes on top of a very high level of price rise recorded in October last year,when it jumped 14.2 per cent. This suggests that the base for calculating the rise for the recent week ending October 15 was already high. Inflation is always calculated on the basis of the figures for the corresponding period the previous year. Figures released by the Commerce Ministry today show that vegetables in the week of October 8-15 were 25 per cent dearer than a year earlier. Fruit prices grew 11.96 per cent. Potatoes and onions,however,are cheaper compared to this time last year,with their prices down 0.45 per cent and 18.93 per cent. Sudipto Mundle,Member,Prime Ministers Economic Advisory Council,said: Looking at raw numbers can be misleading without a de-seasonalisation exercise. Having said that,the spike is largely because the summer crops are phasing out of the market and the winter fruits and vegetables are yet to come in. Farmers have just planted potatoes,garlic etc. It will be four-six weeks before these come to the market. Meanwhile,the supply from previous season of vegetables such as lauki is tapering off. Nearly two-fifths of vegetables in India get spoilt after harvest due to poor storage facilities and distribution channels. With losses in mandis high,they have to involve the private sector,said P K Joshi,analyst at the International Food Policy Research Institute. Wage growth and higher transportation costs have also begun to creep into prices,feeding inflation further. The fuel price index jumped 14.7 per cent for the week ending October 15 compared with the corresponding week last year. Yields of fruits and vegetables are 20-30 per cent lower than in other developing markets like Brazil and Indonesia. According to Joshi,farmers of fruits and vegetables are unorganised,which increases costs and makes the market less efficient. These are farmers with small holdings. You have to start cooperative marketing to reduce transaction costs, he said. Cereal prices eased slightly to 4.62 per cent from 4.73 per cent the previous week. Pulses grew dearer by 9.02 per cent while wheat prices dropped 0.95 per cent from the corresponding week last year. Milk became dearer by 10.85 per cent as prices accelerated from seven days earlier. Inflation for eggs,meat and fish remained high at 12.82 per cent despite a dip from the previous weeks 14.10 per cent. Anjaneya Sinha,chief executive of the National Spot Exchange,said deliveries had been delayed during the festive season with many truck drivers on leave. The spike in food-price inflation reflected sharper rises in the prices of perishable vegetables. You cant store them for even 3-4 days, he said. For potatoes and onions,you have sufficient storage facilities, Sinha added.
