India’s food inflation has remained consistently high over the past two years, diverging from the global trend of stable or declining prices, according to the latest Economic Survey tabled in Parliament on 31st January 2025. The report attributes this trend largely to frequent extreme weather events, which have disrupted supply chains and affected crop yields.
A significant decline in onion and tomato production over the past two years has been linked to weather-related disruptions in key agricultural states. The survey highlighted that extreme weather conditions in 2023-24 damaged crops in major horticulture-producing regions, leading to inflationary pressures on essential food items.
Citing data from the Centre for Science and Environment, the report revealed that the total crop area damaged in 2024 was higher than in the previous two years due to extreme weather. The India Meteorological Department (IMD) also noted a sharp rise in heatwaves, with such events recorded on 18% of days between 2022 and 2024, compared to just 5% in 2020-21.
While the report acknowledged that factors like geopolitical tensions and climate disruptions have caused price fluctuations, it noted that their impact has now eased, resulting in greater variations in commodity prices.
To ensure long-term price stability, the government has proposed developing climate-resilient crops, enhancing price-monitoring data systems, reducing crop damage, and minimizing post-harvest losses.
