Tomatoes, onions and potatoes are the most consumed vegetables in India and make up more than a third of retail inflation in the vegetables category. Do frequent volatile spikes in food prices, mostly led by weather shocks, need a policy response?
With erratic monsoon already disrupting harvesting cycles of key food items like onion and tomato, unseasonal rains in last week of November, especially in Maharashtra, may drive those prices into a tailspin once again. This does not seem to be a good news for an economy already battling a spike in food price inflation mostly led by tomato, onion, potato (TOP) and pulses, which often stays volatile.