According to a report by the State Bank of India (SBI), per capita availability of fruits and vegetables in India has increased by 7 kg and 12 kg, respectively, over the past decade. Despite this positive trend, the report highlights several challenges in the agricultural supply chain that continue to impact food consumption across the country.

While states like Madhya Pradesh, Uttar Pradesh, Punjab, and Jammu & Kashmir have seen growth in fruit and vegetable production, many northeastern states have reported a decline in per capita production. Overall, India produces around 227 kg of fruits and vegetables per person annually, exceeding the recommended 146 kg. However, 30-35% of these perish due to their perishable nature, as well as inefficiencies in harvesting, storage, transport, and packaging, which hampers their overall consumption.

The report also draws attention to the negative impact of extreme weather conditions, such as heat and cold waves, on agricultural production. For instance, a 1°C increase in temperature beyond 30°C during the grain-filling period can reduce wheat yields by 3-4%, according to the Indian Council for Agricultural Research (ICAR).

In terms of inflation, retail inflation in India eased to 5.48% in November 2024, primarily due to a significant drop in vegetable prices. However, protein inflation increased, contributing to overall core inflation. The report predicts food price inflation will average 4.8% for the fiscal year 2025.

It also points out that inflation levels across Indian states are converging toward the 4% target, with middle- and high-income states experiencing a faster decline in food inflation compared to low-income states. This trend is linked to labor migration from low-income to higher-income states, which has accelerated the disinflation process. Additionally, the report suggests that wage increases for non-agricultural laborers have minimal impact on food inflation.