A steep hike in the prices of essential commodities like milk, spices, vegetables, pulses, edible oil, non-vegetarian items, eggs and grocery items during the last few months is burning a hole in the pockets of lower middle income groups and economically weaker families, writes Anup Verma
Steep hikes in prices of essential commodities like milk, spices, vegetables, pulses, edible oil, non-vegetarian items, eggs and many other grocery items during the last few months have driven many food items off the menu in lower middle income and economically weaker families. The spiraling prices of items which are of basic necessity had put additional burden on families whose life was already difficult due to the hike in fuel prices. The harsh reality is that the household budget of almost every family from across societies of the country is affected and the people finding it hard to manage their day to day affairs.
It is very disappointing that the market analysts, farmers’ associations, shopkeepers and traders have been predicting the upward trend to continue as no major step is being taken to minimise the people’s woes by the agencies concerned. “Majority of items that are considered important ingredients for a balanced meal have been burning a hole in the common man’s pocket. During a year period, these items have registered a two to three-fold rise. The upward trend will not ease in the near future as there is a huge shortage in supply also,” said Manoj Kumar, a Noida-based market analyst.
Traders of Asia’s largest Azadpur Mandi claim that they have been receiving vegetables and fruit at higher rates hence no option than selling the same to wholesalers and retailers accordingly. Secondly, there is a gap in supply even during peak season due to various reasons. “From onion, tomato, potato and many other vegetables to orange, kiwi, guava, apple, banana and many other fruits, the majority of items are coming here at increased rates. The government hiked fuel prices and as a result there is a price rise everywhere. What is surprising is that no step is being initiated to provide some relief to customers who are reeling severely these days,” said Rajendra Sharma, former chairman of Agriculture Produce Marketing Committee (APMC).
Khari Baoli, Asia’s largest wholesale grocery and spice market, has a similar situation as the traders have been facing similar predicament. The traders are rueing that the market is upset for the last few months and no remedy is being provided. “First there was fuel price hike and then its severe consequences. Things cannot be ignored citing Ukraine-Russia war and post Covid effects as people have been facing hardships. Being a trader, we have been facing multiple problems to run the market. Here, the government agencies must come with a solid solution to deal with the situation,” said Anil Goel, a Khari Baoli trader.
The traders add that the market is upset and in its consequences families are avoiding many items in their menu and the worst affected are lower-class families. “Items like almond, cashew nut, walnut, pista, kishmish and pine nut are being sold in low quantities in comparison to previous years. People visiting our shops are asking for low price items and also enquiring when the prices will come down. Since we have families also we do understand the situation,” said Rajesh Garg, another trader from the market.
A market analysis also reveals how the prices have shot up in the market causing lots of difficulties to the families to manage their household activities. Market survey says that despite the government's tall claims, the prices of pulses like Arhar Dal are hovering between Rs 150 and 190 per Kg in the retail market. Price of mustard oil, too, was varying between Rs 170 and Rs 190 per litre in Delhi’s retail markets. The worst hit is garlic which has crossed the Rs 160 per kg mark and traders have claimed that it would breach the Rs 200 mark soon.
The analysts claimed that besides poor supply there were some other factors which have hit the market hard. Most vegetable items like peas, capsicum, onion, tomato, potato, peas, spinach, ginger, etc were being sold at all-time high rates. “Faulty supply-chain management, increased cost of production, global inflation, less space for cultivation, less production due to improper rain, improper management and distribution, hoarding and increase in the demand food and green vegetables are also responsible for price rise,” said Birender Awana a farmer from Greater Noida West.
Residents of low income and those working on daily wages are the ones who have greatly been affected with the price of all the essential commodities rising in the last few years. The man on the street is not only affected by skyrocketing prices of daily essentials only but soaring rates of LPG, patrol and other fuels that further escalate transportation costs of the products.
Nirav Bansal of Model Town said that almost all in the city are feeling the pinch of rising prices. “We have limited our grocery shopping to the essentials only. You cannot find a single product in the market with the same price as last year. I have noticed that prices of packaged items have increased by 20 to 25 per cent while some of the manufactures have not changed the price but reduced the wait of the product. This has now reached the level where government intervention is needed at most.”
As Sujata Arora, a private teacher and residents of Sector 1, Greater Noida said that high retail inflation tends to hurt the poor and lower middle class very badly, as it affects the price of essential
commodities that are consumed by all.”
“The main problem is the unchanged income of most people along with soaring prices of daily essentials. Most of us are still earning the same compared to a year before but the cost of living is increasing day by day. It is not only hurting an individual or a community but it will have long lasting economic impacts on the overall economy. While purchasing power of persons’ decreasing and prices of essential commodities are increasing day by day. How long can a person survive with such a disparity,” she asked?
“The rising LPG cost has become a nightmare for low-income groups. We have started using an old kerosene stove to save gas. We purchase it from black market at an even higher cost but still it is easy for us to use it instead of gas because collecting more than thousands to but LPG is not possible for us being a rickshaw puller,” said Dinesh who hails from Bihar and living in Mehrauli area.
Jimmy Kumar, a Noida-based shop owner said not only consumers but they are also facing difficulties to run their shops. “Earlier we were getting commodities at lower prices but now we pay more money. If item is unsold for a long, we suffer loss. Besides this, our customers have reduced the sale from their end as much as they can. The customers are waiting for prices to decrease but there is no relief from anywhere. The ground reality is that our shops have worn a deserted look,” he said.
Rohit Agarwal, a wholesaler from Yamuna Vihar, says that prices of many essential items have almost doubled over a year period as there is no command over retail. Like prices of spices have shot up to a maximum extent, fruits and dry fruits have become costlies. “Earlier we were selling a 50 gram Garam Masala packet of Rs 35 while now it is varying between Rs 45 and 50. Similarly, a 200 gram packet of cashew nut was being sold at Rs 200 while in a span of 6-8 months it has become more than Rs 270. In a year, milk has become costlier by Rs 7 per litre,” Rohit said.
Shweta Shriwastava, a housewife from Shahdara area, says that there is no option than purchasing essential items at increased rates. “Since we have to manage the kitchen on a limited income, we are facing lots of problems. Earlier we were purchasing items from e-commerce websites at a discounted rate but now there is no discount at all. These websites too have started minting money by increasing the prices. Now the situation is that we have returned back to square one,” she said.
Govt must wake up, say people
Things cannot be ignored citing Ukraine-Russia war and post Covid effects as people have been facing hardships. Being a trader, we have been facing multiple problems to run the market. Here, the government agencies must come with a solid solution to deal with the situation,” said Anil Goel, a Khari Baoli trade.
What they say
Shopkeepers
Paying an increased amount for the same quantity to the wholesalers.
Consumers asking for the minimum quantity of materials.
Purchasing powers of consumers have come down.
Wholesalers
Demand has been drastically decreased from retailers.
Supply from the source is also not proper.
Analysts
There is no government control on the retail market.
Price of the same item is different at different shops.
There is no regulation on supply.
Shortage of items is common these days.
Consumers
Prices of essential commodities have witnessed manifold increase in the last 10-12 months.
Hoarding/storage has become a common practice on any festive occasion.
E-commerce platforms, too, are charging increased money besides delivery charges.
Discounts/rebates have disappeared from e-commerce sites.