Food inflation composition shifts as protein-rich items

The report said, "The protein-rich items (including fish) and processed food (including sugar, confectionery and beverages) have emerged as the key contributors to food & beverages inflation in July." It added that fruits and nuts continued to contribute to food inflation, while the contribution.

The review flagged rising global vegetable oil prices as a potential source of persistent inflationary pressure for India, given the country's dependence on imports of crude palm, soybean and sunflower oils. The report attributed the global tightening in vegetable oil supplies partly to the.

What Happened

The food inflation outlook is also being clouded by the persistence of El Nino conditions. The report cautioned that, "The persistence of El Nino raises the risk of a weaker or uneven monsoon and, consequently, of pressure on crop yields and food.

• The report noted that the FAO Vegetable Oil Price Index remained elevated, with inflation at 17.3 per cent in July 2026.

• It said, "Consequently, domestic edible oil inflation rose steadily from 2.82 per cent in March to 7.84 per cent in July, reflecting the lagged pass-through of higher landed costs to retail prices, posing persistent.

• The review's broader outlook remains cautious, saying, "The outlook for domestic food inflation and agricultural output remains cautious, with an intensifying El Nino expected to peak in late 2026."

Key Details

At the same time, the review also cautioned against drawing a direct one-to-one link between El Nino and agricultural outcomes, pointing to irrigation, procurement and food-stock mechanisms as important buffers. It said, "In the months ahead, particular attention may be required to.

• The review said the government had amended the import policy for raw sugar to allow 10 lakh metric tonnes of duty-free imports under the tariff rate quota (TRQ) until October 31, 2026.

• Onion inflation stood at around 22 per cent and garlic inflation at 35 per cent, with the report linking the deterioration in stored onion from the previous Rabi crop to unseasonal hail and rainfall.

• The report also noted that vegetable-price pressures had moderated in July, even though onion and garlic prices remained elevated.

Why It Matters

It said the weather phenomenon could pose downside risks to crop yields during the late-August flowering and grain-formation stages and affect soil moisture and winter temperatures important for upcoming Rabi crops, particularly wheat and mustard. Against the backdrop of food-price pressures, the.

• The review said the policy was aimed at preventing hoarding and stabilising prices.

• The measures come amid concerns over dry weather and patchy monsoon conditions affecting sugarcane yields, heightened seasonal consumption and new sources of demand from biofuels.

What Reports Say

Coverage of the story so far points to:

• Continued reporting by The Tribune as more details emerge