Prices of vegetables and fruits are set to ease further in India, with the first Advance Estimates pegging horticulture production at 326.58 million tonnes for FY21 growth of 1.8 per cent over last year. Retail food inflation fell to 1.89 per cent in January from 3.41 per cent in December. Within that period, the price decline in vegetables came in higher at 15.84 per cent compared to 10.41 per cent, while the inflation rate in fruits rose to 4.96 per cent from the earlier 2.68 per cent.

The area under horticulture was also projected to rise 2.7 per cent during FY21, against the previous year. Total horticulture production in FY21 is estimated at 326.58 mt, an increase of 5.81 mt over FY20. Estimates peg production of fruits, vegetables, aromatics, and medicinal plants, and plantation crops to increase in FY21, compared to the previous year’s, with that of spices and flowers projected to fall.

Production of vegetables is estimated at 193.61 mt 2.5 per cent higher than the 188.91 mt in FY20. Onion production is estimated at 26.29 mt, slightly higher than the 26.09 mt in FY20. Though onion prices have risen exorbitantly on a month-on-month basis, this does not show the inflation rate given that it is calculated on a year-on-year basis. As such, onions witnessed deflation or a fall in prices at the rate of 0.76 per cent in November, 46.48 per cent in December, and 36.16 per cent in January. Potato production was estimated at 53.11 mt in FY21, against the production of 48.56 mt in FY20.