The food inflation rate in India has remained firm over the past two years defying the global trend, and frequent extreme weather events are one of the reasons, the government said in its latest Economic Survey.
Tabled in Parliament on Friday, the report said that the decline in onion and tomato production over the past two years can be partly attributed to frequent extreme weather events in major producing states compared to other regions.
Extreme weather events in 2023-24 damaged crops in major horticulture-producing states, leading to inflationary pressure on horticultural commodities, it said.
“Over the past two years, India’s food inflation rate has remained firm, diverging from global trends of stable or declining food inflation. This can be attributed to factors such as supply chain disruptions exacerbated by extreme weather events and reduced harvest of some food items,” the report read.
Citing data from the Centre for Science and Environment (CSE), the report said that the total crop area damaged in 2024 was higher than in the previous two years due to extreme weather conditions.
The government also referred to India Meteorological Department (IMD) data, which shows a significant rise in the frequency of extreme weather events, especially heatwaves.
Between 2022 and 2024, heatwaves were recorded on 18 per cent of days, compared to 5 per cent in 2020 and 2021, the report said.
The Economic Survey acknowledged that recent shocks like geopolitical conflicts and extreme weather have caused price fluctuations, but their impact has now subsided, leading to more variation in commodity prices.
For long-term price stability, the report suggested developing climate-resilient crops, strengthening data systems to monitor prices, reducing crop damage, and minimising post-harvest losses.
On Saturday, the government announced a six-year mission to increase pulse production, aiming to achieve self-sufficiency in three widely consumed varieties – tur, urad, and masoor.
