Inflation raining from the sky, what will RBI do, after tomato, now onion

The eagerly awaited monsoon has now knocked in the country and this knock has increased the heartbeat of Delhi and North India as well as Western India. The reason is the prices of tomatoes which have crossed Rs 100 per kg in many parts of the country. The effect of rain from the sky has been such that at this time the prices of vegetables are touching the sky. No vegetable is less than Rs 50 per kg in the country’s capital Delhi. Three reasons are being given. In many parts of the country, due to the heat, crops have been damaged, due to lack of timely rains, the spread of vegetables could not be that much and the production of last vegetables has reduced.
It is from here that the script of the second film has also started to be written. Yes, now we will talk about onions. Whose prices can hit a century in the coming one and a half to two months. That is, the price of onion can reach Rs 100 per kg or beyond. Onion crop is feared to be ruined due to heavy rains in Maharashtra and Madhya Pradesh. The effect of which can be seen on both wholesale and retail prices in the coming days. In such a situation, the storage of onion traders has also started from now.
price of vegetables onion
So what is the message of all this? When the monsoon has just started in the country, is inflation raining instead of relief from the sky? The question is also that when the CPI inflation figures will come in the month of July, will the inflation in the country be less or more? And if the figures appear to be more than 5 per cent or around 6 per cent, then what steps will RBI take in such a situation, which has frozen the repo rate twice in a row i.e. in April and June MPC. Will RBI be left with no option but to raise interest rates in August MPC cycle? By the way, experts say that the RBI has room for an increase of 25 basis points in the repo rate. Let’s try to understand how tomatoes and onions can increase the EMI of common people?
Signs started coming from April itself
There can be a significant increase in the prices of onions between August and October, it is estimated that there has been rain in those areas of Maharashtra where onion production is seen more. In a Financial Times report on May 5, state government officials had said that rabi onions are kept in reserve and the same onions are supplied in October. Due to unseasonal rains in April, the moisture content of onion would have increased. This will reduce the shelf life of onions by 4 to 6 months.