Fruit inflation bites, coconut, pineapple prices up more than 20%

Pineapple, Grapes and Coconuts are driving fruit inflation

Retail inflation may have dropped to a five-month low of 4.31 percent in January but fruit  prices are showing no signs of cooling.

India’s fruit inflation rose to a decadal high of 12.2 percent in January from 8.6 percent in the previous month, data released by the government on February 12 shows.

Experts attribute the spike to rising demand, higher imports and a weaker rupee, along with a low base.

“Weaker rupee could also be behind this, as most of the exotic fruits are imported,” said Paras Jasrai, senior analyst, India Ratings and Research.

Coconut, grapes, pineapple and other fresh fruits are the likely reason for the spike.

Coconut inflation was at a seven-year high at 38.7 percent in January, while pineapple prices rose 23.6 percent from the previous year compared with 21.8 percent in the previous month.

Grapes and other fresh fruits prices saw the quickest increase. Other fruits inflation rose to 18.9 percent in January from 10 percent in the previous month, while grape 16.1 percent on the back of deflation during the year-ago period.

Grapes and fresh fruits have a 9.4 percent share in the overall fruit inflation, while coconut has 9.1 percent share. Fruits have a 2.9 percent share in total inflation basket.

Indians go for more exotic fruits

The demand for exotic fruits is also visible from rising imports of these items.

Mandarin imports were up 33 percent in the first eight months of the year, while cranberry imports were up 159 percent. Kiwi fruit imports rose by 25 percent to $51.7 million from $41.4 million in the previous fiscal (April-November).

Pomegranates were also a sought-after commodity as imports rose 47 percent to $10.7 million.

This rise is also visible in items like avocados, where imports have doubled to $14.9 million from $7.6 million during April-November 2023.