Vegetable Prices May See 15% Increase, Farmers To Rework Crop Choices: Experts On Petrol-Diesel Price Hike

Petrol,Diesel Price Hike: Petrol and diesel prices were raised by Rs 3 per litre each on Friday, marking the first fuel price revision in over four years. The increase comes amid rising pressure on fuel retailers due to soaring global crude oil prices triggered by the ongoing conflict in West Asia.

In Delhi, petrol prices climbed from Rs 94.77 to Rs 97.77 per litre, while diesel rates rose from Rs 87.67 to Rs 90.67 per litre.

While the hike may appear small on paper, experts warn it could gradually increase the cost of daily living. Diesel plays a critical role in India’s transport and agricultural sectors, powering trucks, buses, tractors, irrigation pumps, and logistics vehicles that keep the country’s supply chain running.

As fuel costs rise, transportation expenses are also expected to go up, eventually affecting the prices of vegetables, milk, grains, groceries, and other essential items. Industry experts estimate that prices of several daily-use products could witness a short-term rise of 5-15 per cent, especially highly perishable goods such as leafy vegetables and tomatoes.

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Petrol-Diesel Hike May Force Farmers To Rework Crop Choices, Say Experts 

Speaking to Daily Jagran, SBP Pattabhi Rama Rao, Managing Director of Gourmet Popcornica Pvt. Ltd., said the diesel price hike is expected to impact the entire agriculture and food supply chain.

He explained that higher diesel prices directly increase cultivation costs as tractors, harvesters, and irrigation pumps largely depend on the fuel. Farmers may also have to pay more for fertilisers, seeds, and pesticides since these inputs are transported by road.

According to Rao, transportation expenses after harvest are also likely to rise, from moving produce to mandis and processors to delivering goods to wholesalers and retailers. Small and marginal farmers may face the biggest challenge as they have limited capacity to absorb rising operational costs.

He added that if fuel prices remain high for an extended period, some farmers may shift towards crops that require less irrigation, fewer machine operations, or lower transportation costs.

For food and snack manufacturers, the impact could be visible through rising raw material and packaging logistics expenses, leading to tighter profit margins across the supply chain.

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What Could Become Costlier?

- Vegetables: Prices of vegetables are expected to react the fastest because of their dependence on quick transportation. Experts estimate a 5-15 per cent rise in the short term, particularly for tomatoes and leafy greens.

- Grains and pulses: Staples such as grains and pulses may witness a gradual increase of around 3-10 per cent over a season if diesel prices remain elevated.

- Milk and dairy products: Since milk transportation relies heavily on refrigerated logistics, prices of milk and dairy products may also inch upward in the coming weeks.

- Packaged foods and snacks: Companies dealing in processed and packaged products may either increase prices by 3-8 per cent or reduce pack sizes while keeping prices unchanged, a practice commonly known as “shrinkflation.”