 "Vegetable prices surge, rentals may drop: How Bengaluru’s water scarcity is worsening")
Bengaluru’s water scarcity has left its residents high and dry. India’s “Silicon Valley” has been staring at a water crisis for weeks, even before summer set in. Amid this, consumers are reportedly stung by high vegetable costs as supplies have taken a hit.
The water crisis in Karnataka’s capital is only expected to get worse as mercury climbs up in summer. Bengaluru’s water woes are also likely to affect its real estate market, with potential buyers reconsidering their investments.
Let’s take a closer look.
Vegetable prices shoot up in Bengaluru
The retail prices of several vegetables such as brinjal, capsicum, beans and cabbage have increased in Bengaluru, as per The Hindu report.
Although the vegetable rates have seen only a marginal hike in wholesale markets, the retail prices have nearly doubled.
“As there is a lot of heat emanating from the ground and no rain, farmers are not able to take out the yield which is why there is a supply crunch in the market. Until there is good rain, which might be in another two months, the prices will remain high,” N Manjunath Reddy, a vegetable trader in the IT hub, told The Hindu.
Bengaluru city majorly depends on its nearby Chikkaballapur and Kolar districts for supplies of vegetables and fruits. However, groundwater levels in these districts have also plunged, creating a water shortage for irrigation.
Impact Shorts
More Shorts“Right now, only four (out of 14) borewells are functioning. The weather is so dry and soil moisture is very low. I do not know if our crops will survive without irrigation,” Shreedevi, a farmer on the outskirts of Chikkaballapur town, told Deccan Herald (DH).
Chikkaballapur and Kolar districts have historically depended on groundwater for agriculture purposes.
“Most vegetables supplied to Bengaluru come from nearby Malur and other taluks in Kolar and Chikkaballapur districts. This is the case because vegetables and fruits are highly perishable. Due to proximity and the massive scale of demand from Bengaluru, these areas have become important,” Prakash Kammardi, retired professor in the department of agricultural economics at University of Agricultural Sciences, was quoted as saying by DH.
A vegetable trader has warned that vegetable prices could further surge in the city as supply will fall more if there is no rain in the coming week, The Hindu reported.
Investors reconsider Bengaluru move
People seeking to buy a property in Bengaluru are reassessing their decision as several parts of Karnataka’s capital reel under a water crisis.
As per a Moneycontrol report, the eastern IT corridor and various areas of central Bengaluru have been hit due to unplanned urban growth and real estate development.
Local brokers say investors are now looking at alternate properties in north Bengaluru and Indiranagar to avoid water crisis-afflicted regions.
Kiran Kumar, vice president of the city-based property consultancy Hanu Reddy Realty, told Moneycontrol, “Investors and prospective tenants today are becoming choosy and are factoring the water shortage in their decision-making. Mostly, the queries we get today are worried about the water availability in the areas where inventories are available for rent or sale.”
Homebuyers and investors are also mulling over investing in larger gated communities that require high quantities of water, as per the report.
Realtors also predict a 10-15 per cent decline in rentals in the most-affected areas such as east and central Bengaluru, if the water crisis lasts another month or two.
“During COVID, the city saw a major drop in rentals, by at least 20 per cent, due to people moving back to their native places. Not only did that get corrected, but also almost doubled in the last two years. With the water crisis, we may see many move back to their hometowns, thus again correcting the real estate prices,” Balaji Badrinath, managing partner at the local office of real estate consulting firm Coldwell Banker, told Moneycontrol.
Is there a threat to Bengaluru’s IT hub status?
According to a new Indian Institute of Science (IISc) study, Bengaluru’s water scarcity can be attributed to an almost 70 per cent dip in the water surface area in the city.
Over 70 per cent of the IT hub’s water comes from the Cauvery River. Due to inadequate rainfall last year, a significant plunge was reported in the water levels of the river.
As the weak monsoon depleted groundwater levels, the city’s vast population is now suffering from a water shortage.
Besides acute water scarcity, Bengaluru’s traffic problems are also infamous.
A recent report by Nasscom-Deloitte has found that due to these civic issues, IT companies are now open to expanding their operations beyond Karnataka’s capital.
As many as 26 Tier 2 cities have emerged as the “next wave of technology hubs” in India, offering sustainable and scalable growth for the technology sector, Economic Times (ET) said citing the report.
Bengaluru’s population will keep growing, reaching about 20 million (two crores) by 2031. This will put more pressure on its resources and infrastructure. As per ET, the city could lose its status as India’s Silicon Valley to emerging tech hubs in the country if it does not take active measures to meet the needs of this expanding population.
With inputs from agencies
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