'Food price inflation continues to remain elevated,' said Reserve Bank of India Governor D. Subbarao while presenting an update on the monetary policy for this fiscal in Mumbai. 'The uncertain monsoon outlook could further accentuate food price inflation.'

But senior authorities at the Agricultural Produce Marketing Committee (APMC), which overseas the availability and prices of essential food items, said that things were likely to improve in the coming weeks.

'The potato crop in West Bengal was spoilt and that affected the market here and retailers have taken advantage. The Punjab crop is due and things will improve in a few days,' S. Yadav of APMC told IANS.

Similarly, the tomato prices too are likely to stabilise and come down. 'The drought conditions in many states and the heat had affected the tomato crop, which is a perishable item. Now with the rains, the situation is already improving.'

Agriculture Minister Sharad Pawar admitted last week that the delayed monsoon was a 'serious problem' in the country.

Out of 36 meteorological sub-divisions, rainfall was deficient or scanty in 29. According to Pawar, despite some improvement in rainfall in the past week, the government was on guard.

Between July 1 and now, there has been a significant improvement in monsoon rain, with the deficit based on long-term average coming down from 46 percent to 27 percent, Pawar told the Lok Sabha, the lower house of parliament, last Friday.

'But there are concerns regarding Bihar, western Uttar Pradesh, eastern Uttar Pradesh, and some parts in Punjab and Haryana - also in some pockets of Tamil Nadu, not the whole state,' he said.