Fruits, vegetables to be dearer through summer

By Rajendra Jadhav

MUMBAI (Reuters) - Fruit and vegetable prices, up a fifth in the last one month and adding to rising inflation, are likely to climb further in the next three months on restricted supply, traders said.

Lack of irrigation across much of the cultivable land and a rise in temperature, usually lead to a fall in output in summer months in India.

This year, unseasonal rainfall in March in key vegetable producing states badly affected the new crop.

"The supply situation is very tight. Arrivals of many vegetables have come down and will remain on lower side for next few months," said Vilas Bhujbal, a vegetable trader in Pune, Maharashtra.

"Prices of vegetables are unlikely to come down. They may edge up further in the next two months," said Ashok Gavade, a big trader from the Vashi market near Mumbai.

However, in this largely vegetarian country, a bumper crop has put paid to any significant price rise of onion and potato, favourites on the Indian menu, in the last two months.

"Big retail chains are procuring good quality produce at higher prices and it is keeping prices firm," said Kapil Chawla, a fruit and vegetable trader based in Azadpur, Delhi.

Last week, the wholesale price index accelerated to 7 percent in the 12 months to March 22, the highest in more than three years.