El Nino Effect: Prices Soar!

Reduced rainfall and declining groundwater levels associated with El Nino are putting pressure on agriculture and food supplies in India. Water shortages are making cultivation more difficult, while the prices of essential food items such as rice, onions and vegetables have reportedly increased by 5% to 45%. The rise in food prices is adding to household expenses and putting pressure on consumers' monthly budgets.

With water availability declining, some farmers are reportedly avoiding cultivation, while others in certain regions are opting for a crop holiday. These developments could affect agricultural production and the supply of essential commodities. The estimated impact is an additional monthly burden of around ₹1,500 per household. However, the specific regions, period and underlying data for these price increases and household cost estimates have not been provided.