Farmer protests intensify: Vegetable, milk prices on the rise across India

The daily supply at Lasalgaon has reportedly reduced from 15,000 quintals on June 1 when the strike was called in, to 500 quintals.

The retail prices of onions have increased by 50 percent from Rs 10 per kg to Rs 15 per kg in the last five days and are likely to increase to Rs 20 per kg in the forthcoming days.

State legislators Virendra Jagtap and Yashmomati Thakur were detained just before they could pour kerosene and immolate themselves. Retail markets have also reported a hike to the tune of 10 percent in prices of fruits and vegetables.

Punjab

In Punjab, clashes between farmers and traders were reported, compelling the police to intervene and detain a few. Farmers belonging to the Kisan Ekta Manch and Rashtriya Kisan Maha Sangh had called for a bandh in the state, stopping supply of fruits, vegetables and milk to urban areas. The reduction in supply led to price of tomatoes increasing from Rs 25 per kg to Rs 45 per kg while potato was sold at Rs 25 compared to Rs 15 two days ago.

However, a faction of the farmers belonging to the Bharatiya Kisan Union announced today that they will call off the protest on June 6 following skirmishes between protesting farmers and milk suppliers.

Rajasthan and Madhya Pradesh

However, protests seemed to intensify elsewhere in the country leading to a spike in prices of vegetables and milk. In Jaipur, 12 tanks were reportedly vandalized and about 60,000 litres of milk spilled on the streets by anti-social elements; Jaipur dairy reported a loss worth Rs 1 crore. The prices of vegetables increased by 25-30 percent due to restricted supply.

In Madhya Pradesh too, farmers registered their protest by throwing vegetables and spilling milk on streets.

Effect on E-tailers and Restaurants

The repercussions of the farmers’ protests, which was called in 22 states across India, might also trickle down to e-commerce portals such as BigBasket and Grofers. BigBasket’s fruits and vegetables head Vipul Mittal has told the press that the grocery e-tailer has been able to maintain its prices because of its farmer connect; however, he added that they have to “react accordingly” in the eventuality that prices continue to rise.

Grofers co-founder Albinder Dhindsa however said there has been little impact of the farmers' strike, attributing it to no implications on the Delhi APMC. Supplies have been stable in Delhi’s Azadpur mandi with marginal drops reported from other mandis in the NCR.

National Restaurant Association of India president Rahul Singh told Economic Times, “Any volatility in prices doesn’t change menus overnight. But if it persists, then restaurants have to mitigate it by adjusting prices.”