The Hindu : Tamil Nadu News : Inflation is

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Monday, Apr 28, 2008
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Tamil Nadu

Tamil Nadu

Inflation is – a hit below the belt

How the economically backward districts, Dharmapuri and Krishnagiri, manage the dreaded word? S. Prasad finds out

Many have cut down their vacation expenses
Wheat, ragi cheaper than rice

Ganesh, an industrialist earns an income of Rs. 20,000 a month. “With inflation showing no signs of showing down I have no option but to curtail the expenses,” he says.

His wife, Shanthi Ganesh purchases the same quantity of essential commodities but has restricted the usage so that they could extend it for another two weeks. “We are unable to send our grand children to Ooty because of financial constraints. We have also curtailed fuel usage by 30 per cent.”

“People in the lower strata of society have cut down their purchase of essential items including edible oil and other cosmetics. Many of them have switched over to consumption of wheat and ragi as they are cheaper than rice,” says K.T. Kesavan, president, Krishnagiri Chamber of Commerce.

Rasamma, a domestic help, finds it difficult to make ends meet. She earns Rs. 1,500 a month. She pays a rent of Rs. 300 along with electricity and water bill of Rs. 100.

“I have curtailed my daily ration of edible oil, milk and rice. I cannot afford to move to a smaller house, as I have to pay a huge advance,” she laments.

She has not visited her son in Salem for the last one year as travel has become expensive.

The entry of multi-national companies into retail trading has triggered the increase in prices of essential commodities, opines A.C. Velarasan, another trader.

V. Nathiya, a homemaker, with three children has begun to feel the pinch of inflation of late. With spiralling prices of edible oil I have switched over to palm oil, which is cheaper. She has also curtailed her vacation programmes and visit to cinemas.

According to Deva Periban, State committee member, Communist Party of India, apart from mass migration people in the backward districts of Dharmapuri and Krishnagiri are facing chronic hunger and malnutrition, which needs to addressed immediately. The Government should strengthen the public distribution system and provide essential food items at a subsidised rate to control inflation.

The consumption and expenditure pattern has decreased to the lowest level. Agricultural labourers and marginal farmers are worst affected due to the inflation, he added.

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