Hyderabad, November 14, 2020: Telangana is reeling under high retail inflation. In fact, the inflation rate in rural Telangana in October was highest among all States in the country — at 11.98 per cent, according to the Consumer Price Index report for the month of October released by Union Ministry of Statistics and Programme Implementation (MoSPI). The inflation rate in urban Telangana in October stood at 9.05 per cent, fifth highest in the country and the combined inflation rate of Telangana was 10.47 per cent, second highest in India, after West Bengal (10.89 per cent). Telangana’s inflation rate was much higher than the national average — 7.61 per cent. The State has been regularly recording one of the highest inflation rates in the country. In March, the State recorded the highest inflation rate among all states at 8.12 per cent according to the reports published in newindianexpress.com.
In layman terms, the numbers mean that prices of goods in Telangana increased by almost 12 per cent in rural Telangana and by 9 per cent in urban Telangana this year October, as compared to October last year. Dr M Ramulu, Assistant Professor in Economics, Osmania University, said the main reason for this was a lack of supply of goods, mainly food crops, in Telangana’s hinterland. Dr Ramulu said, “The area under vegetables, pulses and fruits is coming down in Telangana whereas area under paddy is rising drastically. As a result, there is a dearth in the supply of these food products, causing a rise in prices and in the retail inflation rate.” As per a report released earlier this year by MoSPI, the value of output from fruits and vegetables in Telangana decreased drastically from Rs 9,31,747 lakh in 2011-12 to Rs 5,73,741 lakh in 2017-18.
Monocropping to blame?
Combined inflation rate of TS is 10.47%, second highest in India, after West Bengal (10.89 per cent). Experts blame singular focus on paddy cultivation in State for rise in prices of vegetables, fruits and pulses.
