The year 2023 has been special in many ways. From stock market to common essential items, a boom was seen everywhere. Investors became rich due to the ongoing boom in the stock market, while the impact of inflation on the kitchen worsened the condition of the pockets. From July 2023 till now, spice inflation has seen a rise. There has been an increase of 22 percent. This is bypassing the balance of demand and supply of spices. It is being said that in the coming times, spices like onion and tomato can also be seen adding the spice of inflation. Let’s take a look at the figures.
This is the reason for inflation
Prices of cumin, turmeric, chilli, pepper and other spices are rising as reduced crop area and pest infestation have affected their yields. Inflation of spices has remained above 22% since July. Economists said this could add another 0.6 percentage points to retail inflation between December and March, as prices are unlikely to ease until the next harvest. Their weight in the total category of inflation is only 2.5%, but they affect the prices of many food products. Bank of Baroda Chief Economist Madan Sabnavis said that for spices, the weight is lower, but higher prices impact the cost of other food products like sauces, packaged food products, masalas, jams, confectionaries etc.
Prices have increased manifold
According to the ET report, the production of cumin (cumin), black pepper and chilli has decreased. So, it is a supply issue. We will have to wait for the next harvest before prices come down. The area of hot spices like black pepper and coriander has reduced significantly. Low production during Kharif has also affected the season. Experts said that the new Rabi crop coming till March 2024 is not likely to have much impact, as rising domestic and export demand can maintain inflation beyond March 2024. In comparison to last year, cumin prices have increased by 122.6% in November. The sowing of turmeric has reduced by 15-18% during the Kharif season, due to which the prices have become Rs 12,600 per quintal this time. Compared to last year, this year it is Rs 7,000 per quintal. Inflation of both turmeric and dry chilli has been recorded at 10.6% in November.