Vegetables price

Food inflation, which accounts for close to half of the overall consumer price index (CPI), slowed to 6.56 per cent in September from 9.94 per cent in August. There was a sharp correction in the prices of vegetables, such as tomatoes and onions. 

The hike in the export duty will make it difficult to export the vegetable and entails huge losses for the farming community, already reeling under a truant monsoon this year.

This raises the likelihood of inflation remaining above 7 per cent in August, said a research report by broking firm, Prabhudas Lilladher.

NAFED and NCCF have been directed by the consumer affairs department to sell tomatoes at Rs 40 per kg from August 20, in view of continued decline in tomato prices in wholesale and retail markets.

Incidentally, the direction has come on a day when India's retail inflation measured by consumer price index (CPI), saw a huge rise to 7.44 per cent in July owing to hike in food prices, as food inflation also witnessed a massive jump of 11.51 per cent, owing to high prices of commodities like tomatoes, cereals, pulses and milk products.