Heatwave effect: Potato prices likely to remain hot despite monsoon progress

Potato and vegetable prices remain high due to heatwave damage, causing a supply-demand mismatch despite monsoon progress. Vegetable inflation hit 29.3% in June 2024. West Bengal and Uttar Pradesh faced key production issues. Farmers are hoarding stocks, anticipating further price hikes. Aditi Nayar of ICRA and Crisil's Dipti Deshpande cite weather and last year's base as inflation drivers. Tomatoes, onions, and potatoes (TOP) prices are affected, with tomato prices down from last year's peaks but still contributing to 9.4% food inflation. Potato output is estimated at 58.99 million tonnes, decreasing from 60.14 million tonnes.