However, it highlights several challenges in the agricultural supply chain that continue to impact food consumption across the country.
Notably, states like Madhya Pradesh, Uttar Pradesh, Punjab, and Jammu & Kashmir have seen growth in both fruit and vegetable production. However, many northeastern states have reported a decline in per capita production.
India produces around 227 kg of fruits and vegetables per person per year, which exceeds the general recommendation of 146 kg per person annually.Consumption,
Despite this, a significant portion–30-35 per cent–of fruits and vegetables perish due to their perishable nature, as well as inefficiencies in harvesting, storage, transport, and packaging. This loss affects the overall consumption of these products.
The report also highlights the negative impact of extreme weather conditions–such as heat and cold waves–on agricultural production in recent years.According to the Indian Council for Agricultural Research (ICAR), a 1°C increase in temperature beyond 30°C during the grain-filling period can reduce wheat yields by 3-4 per cent.Retail inflation in India eased to 5.48 per cent in November 2024, down from a six-year high of over 6 per cent the previous month.
A major factor in this decline was a sharp fall in vegetable prices, which dropped from a 42.2 per cent rise in October to 29.3 per cent in November. However, protein inflation showed some uptick in November, contributing to an overall increase in core inflation.
The report suggests that inflation, driven mainly by food prices, is expected to average 4.8 per cent for the entire fiscal year of 2025, with an upward bias. Despite moderation in fuel prices, food prices remain the primary driver of inflation.
Interestingly, the report shows that inflation levels among Indian states are converging towards the 4 per cent target level.
Middle- and high-income states have experienced a faster decline in food inflation over the last decade, compared to low-income states.
This trend is attributed to the migration of labor from low-income states to higher-income states in search of employment opportunities, resulting in a quicker disinflation process in the latter.
The report also suggests that the increase in wages for non-agriculture laborers has minimal impact on food inflation. The average daily wage rate for non-agricultural laborers and rural inflation has shown little correlation, indicating that wage increases do not contribute significantly to rising food prices.