Eco Survey explains why prices of veggies, milk, pulses made you cry in last two years

The Economic Survey 2023-24 tabled on Monday by Finance Minister Nirmala Sitharaman ahead of the presentation of 2024 Union Budget elucidated why prices of vegetables, pulses, milk skyrocketed in the last two years.

“The production prospects of vegetables and pulses were particularly impacted by unfavourable weather conditions,” the document said.

“The increase in tomato prices in July 2023 was caused by seasonal changes in crop production, region-specific crop diseases such as white fly infestation, and the early arrival of monsoon rains in the northern part of the country,” the survey report said.

It further said that logistics disruptions in isolated areas due to heavy rains also contributed to price rise.

The Economic Survey said that the surge in onion prices was due to several factors, including rainfall during the last harvesting season affecting the quality of rabi onions, delays in sowing during the kharif season, prolonged dry spells impacting kharif production, and trade-related measures taken by other countries.

Low production surged pulses’ price

The document further said the price of pulses, particularly of tur, increased due to low production over the past two years, caused by adverse weather conditions.

Urad production was affected by slow sowing progress in the rabi season coupled with climatic disturbances in the southern states. The area and output of gram was also lower compared to the previous rabi season.

Why milk prices rose?

The Economic Survey pointed out that the price of milk rose since the beginning of 2023 due to a decrease in artificial inseminations during the peak days of the pandemic, as well as higher costs for animal feed.

“The milk cooperatives increased the price of milk and milk products to account for increased costs. The milk price increase moderated by the end of FY24,” it said.

What did the government do then?

The government took prompt actions, including open market sales, retailing in specified outlets, and timely imports, to ensure an adequate supply of essential food items. Additionally, to ensure food security for the poor, the Pradhan Mantri Garib Kalyan Anna Yojana, which provides free food grains to more than 81 crore beneficiaries, was extended for a period of five years starting from January 2024, the Economic Survey 2023-24 said.