Indian traders hold the recent fuel price hikes responsible for the sudden shoot in the prices of vegetables. It’s due to an increase in the freight rates, they say. The price of tomatoes, chillies, radish, and gourd has seen a jump. The effect of the fuel price hike is so much so that the price of pumpkin, at the peak of its season, has also increased.
“We are facing a lot of difficulty due to the price hike. The sale has gone down. The vegetables are perishable and do not stay fresh until the next day. We are purchasing at higher prices but are still not able to save even Rs 5 a kilogram,” Deenanath, a vegetable vendor said.
Another vegetable seller said that the prices of vegetables won’t come down until the prices of fuel fall. Prices are set to be raised further given the sharp jump in crude oil prices in the international markets. It will have a cascading impact on the prices of other items and lead to inflationary pressure and hurt growth while also impacting the prices of other items.
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