THIRUVANANTHAPURAM: Ever since the pandemic outbreak, the woes of the common man have been multiplying everyday. As fuel and cooking gas prices reach new heights with each passing day, the prices of essential commodities are going up without any regulation, making daily life more expensive like never before.
The diesel and petrol prices crossed Rs 100 and Rs 106, respectively, which have been reflecting on the prices of essential commodities. According to market experts, the prices of essential commodities have shot up 40% to 100% in the past year owing to the repeated fuel price hikes. Amid the pandemic and the lockdowns, many families are struggling to make both ends meet. Experts say the cost of living has increased 3.17 times in a span of 20 years.
According to corporate legal expert Bijoy P Pulipra, as per the information published by the Central government, the cost inflation index (CII) for 2021-22 is 317. During 2000-2001, it was 100.
“If a person was spending Rs 10,000 to meet his household expenses in 2001, he has to spend Rs 31,700 for same quantity of household items in 2021. The government should subsidise the fuel prices. It is one way to ensure the availability of essential goods at affordable rates for the consumer. Discouraging the ownership of multiple vehicles and encouraging public transportation is another solution,” said Pulipra.
The purchasing power of the common man has come down as essential commodity prices skyrocket. Confederation of Residents’ Association general secretary M Sashidharan Nair said the rise in fuel prices has adversely affected families that are living on a lean budget.
“Everything costs more and life has turned into a struggle for many. This is a very unfortunate situation. The purchasing capacity of the people has come down. Unemployment is a major issue and we are in a crisis. The governments are not doing much to improve the situation. Cooking gas, transportation and everything concerning the basic needs of individuals cost more,” said Sasidharan Nair.
Impact on FMCG distributors
Around 4,000 distributors of FMCG products in the state are in deep crisis due to the rising fuel prices. All Kerala Distributors Association state secretary Rafik K K said they are struggling to cover the transportation expenses with the small margin they get from distribution.
“We are unable to cut short our expenses. Companies are hiking the MRPs but the margin we get remains the same which is inadequate to cover the expenses of our employees. The industry has turned non-profitable. There are around 8,000 vehicles distributing goods to retailers across the state and we are paying more for our field staff. It’s a very unfortunate situation that needs to be addressed immediately. The government should make interventions,” said Rafik.
According to the distributors, the prices of consumer goods have gone up heavily in the past year. Patron of All Kerala Distributors Association John K M said now the operational expenditure of distribution is 20% to 30% more. “Fuel prices have gone up by more than 50% in the past one-and-a-half years and we are struggling to meet the expenses. We cannot pull off from the business because we distribute on a credit basis to the retailers and payment will be blocked. We are in deep crisis,” he said.
Perishable goods cost more
Biju Kumar, a vegetable vendor at Palayam Market, said prices of vegetables have gone up. The prices of onion, tomato, cucumber and other vegetables have doubled or cost more. “The price of onion used to be Rs 20-25 a kilogram last month, now the retail price is Rs 60. We depend on other states for vegetables and transportation cost has gone up. In the wholesale market, the price of onion is Rs 50 today and we are giving it for Rs 60,” said Biju Kumar.
He said onion farmers suffered heavy losses recently. “Farmers are at the receiving end and when they suffer loss, they start cultivating other crops which have more market value. Now, farmers are hesitant to cultivate onion and that is one of the reasons for the rise in the price,” said Biju Kumar.
As fuel prices hit a new high everyday, people are finding it difficult to make both ends meet. The petrol price has reached C106 in the district and diesel price crossed C100 mark. As a result, the prices of essential commodities are also rising
