Weak Monsoon Fails to Push Up Indian Food Costs, Report Finds

New Delhi, July 6 – A fresh report from MK Global Financial Services confirms that India's food commodity prices have remained largely flat despite a deficient monsoon season.

According to the latest weekly retail figures, vegetable prices rose by 1.5 percent, eggs by 1 percent, cereals by 0.5 percent and edible oils and fats by only 0.2 percent.

Annual comparisons paint a slightly different picture, with oil and fat prices increasing 11 percent, eggs 6 percent, vegetables, milk and spices each up 3 percent, cereals 2 percent and pulses 1 percent.

States that are major food producers – Maharashtra, Gujarat, Madhya Pradesh and Uttar Pradesh – have recorded continuous monsoon shortfalls, raising concerns about potential supply gaps and price spikes in the weeks ahead.

Rainfall measurements up to July 3 indicate a 31 percent deficit relative to long‑term averages. June experienced a 40 percent drop, marking the most arid June in a decade.

The report also points out that sowing operations have been curtailed due to the weak monsoon, leaving reservoir storage at just 26 percent of capacity – a 39 percent reduction from the same period last year. Water availability varies across regions, with central India at 32 percent, north at 29 percent, west at 28 percent, south at 20 percent and east at 19 percent.

The India Meteorological Department forecasts that July will see below‑normal rainfall, keeping apprehensions about the monsoon and kharif planting season alive.