Drought and hail affects agriculture

Because of the weather, the agriculture is in a difficult situation. Food will become more expensive due to the lower production and the ice damage. Price increase might be up to 10 percent with the VAT increase.

Agriculture is only 3-4 percent of the Hungarian GDP but the
good or bad functioning of the sector puts a large impact on the whole economy.
The agricultural value of a $ 85 billion at current prices in the first three
months of this year, was not as low since the first quarter of 2000.
Agricultural production decreased by 9.8 percent in the last 12 months. Because
of the drought this year's wheat crop decreased by 30 percent (1.5 million
tons) since last year which means 3,5-4 million tons of crop compared to last
years 5.5 million tons production. A similar loss is expected in other cereals
and severe losses due to drought in the rape and cabbage production too. The
weekend storm and the hail caused severe damage to the fruit. The smaller crop
together with the VAT increase will result in an approximately 10 percent price
increase – report Origo.