After soaring tomato and vegetable prices, now there's another reason that will cause more strain on household budgets. Pulses and rice (Dal-Chawal), the quintessential comfort food of India, are becoming increasingly expensive, with prices having already gone up by 10% to 12%.
Despite government efforts to curb pulse prices, the upward trend seems unstoppable in the short term. Experts stress the importance of continuing government subsidies and incentives to alleviate the burden on households.
The price of pulses, a staple food item for many Indians, continues to surge, with a 10% increase this year and expectations of further hikes. Despite the government's efforts to curb prices, experts suggest that continued subsidies and incentives are necessary.
Inflation in the consumer price index reached 4.81% in June, and pulses could soon join the list of expensive food items, alongside tomatoes and other vegetables.
While higher vegetable prices are typical during the monsoon season, pulses have experienced an almost 10% surge this year. Over the past five months, the inflation rate of pulses, according to Crisil, a rating agency, has nearly doubled. June's CPI indicated a significant increase, with pulses inflation reaching 10.58%.
What exacerbates the problem with pulse inflation is the concurrent rise in wheat and rice prices, making the overall cost of the Indian "thaali" (plate) increasingly expensive. Rice prices have surged by 10%, and wheat prices by 12%.
Pulses, such as Arhar and Urad dal, are an affordable protein source for many Indians and play a vital role in nutritious meals, including mid-day meals and state-run food programs. While vegetable inflation is expected to be temporary, pulses could experience sustained price increases. Pulses carry a 6% weightage in the food inflation basket, and any rise in prices adversely affects household budgets.