Food Inflation Current Affairs for UPSC

India’s Index of Industrial Production recorded year-on-year growth of 7.3% in June 2026, accelerating from the previous month on the strength of manufacturing, electricity and investment-related goods. However, the use-based composition of industrial production shows a less balanced picture: capital goods and intermediate goods have grown much faster than mass-consumption goods over several quarters. This has renewed concern that India’s industrial recovery may be driven more by investment and infrastructure than by broad-based household demand.

India imported a record 16.9 million tonnes of vegetable oils, nearly 6 million tonnes of pulses and 1.1 million tonnes of raw cotton in 2025-26, and a strengthening El Niño with a weak southwest monsoon now threatens to push these agricultural imports even higher in the current year. Rainfall in June 2026 was 38% below normal and kharif sowing of pulses, oilseeds and cotton has fallen sharply. This article explains what El Niño is, how it affects the Indian monsoon and kharif-rabi crops, why India depends on imports of edible oils, pulses and cotton, the cushioning factors like record foodgrain stocks, the government's likely policy response, and the long-term missions to cut import dependence — with UPSC Prelims facts, MCQs and Mains practice questions.

India's wholesale inflation measured by the Wholesale Price Index (WPI) surged to 9.87 per cent in June 2026 — the highest in the revised series with base year 2022-23 — from 9.68 per cent in May, driven by a sharp acceleration in food prices even as fuel inflation eased, with economists warning that inflation is becoming more generalised. The Ministry of Commerce and Industry also released the new Producer Price Index (PPI), which rose to 9.57 per cent. This article explains the June data, the revised WPI series, the WPI-to-PPI transition, the WPI–CPI distinction, and the implications for monetary policy and the economy, for UPSC Prelims and Mains.

India’s southwest monsoon has shown weak progress over western India, especially Maharashtra, amid developing El Niño conditions and a large early-season rainfall deficit. IMD’s latest monsoon outlook, rainfall data and extended-range forecasts point to weak cross-equatorial flow, below-normal rainfall risk, heatwave conditions in parts of Maharashtra, and possible implications for kharif sowing, food inflation, water security and disaster preparedness.