The Hindu : Andhra Pradesh / Hyderabad News : No respite from rising prices

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Andhra Pradesh

Andhra Pradesh - Hyderabad

No respite from rising prices

Swathi.V

Poor and middle class continue to be at the receiving end

Photo: G. Krishnaswamy

Disturbing trend: The prices of commodities have risen by 25 to 30 per cent in the last few months. –

HYDERABAD: All hope for respite coming to a naught, and attentions of political parties fixed elsewhere, prices of essential commodities refuse to beat a retreat. The proverbial straw that broke the camel’s back is but a wee bit away in terms of household budgets.

Price hike within the past couple of months appears all the more staggering with each commodity getting jacked up by 25 to 30 per cent.

“What I and my husband, a commercial artist, earn entirely goes towards running the household. Whatever savings we were making on our daughter’s name are now being spent for the grocery needs. The rate of good quality rice has gone up from Rs. 22 to Rs. 29 within the past one month. For vegetables, we are spending about Rs. 25 per day, not to speak of milk and eggs,” laments R. Vanitha, a receptionist with a private firm.

The going has become especially tough for lower middle class families who are neither affluent enough to absorb the price shock, not deprived enough to claim the Rs.2-a-kilo rice. Even Below Poverty Line families covered by the rice scheme depend on the open market for the other commodities essential for a decent meal.

“Prices of all the commodities have seen a phenomenal rise. Even sugar, which was sold at Rs. 14.50 a month ago, is being sold at Rs. 18 now,” says Shravan Kumar, proprietor of the Jagini’s Food Land chain of supermarkets.

The smallest household of four, if assumed to consume about a kilogram of rice per day would now spend about Rs. 250 to Rs. 300 more than it spent three months earlier. Add the pulses, oil and other essentials, and the monthly budget could make the heads reel.

Retention of stocks

“Paddy, which we procured at Rs. 1,000 per quintal up to March, is now being sold at Rs. 1,600. The price fluctuates on everyday basis. This is the first instance in Indian history, when despite a ban on exports, the price of rice does not stabilise,” B. Prasad from the wholesale grain chain ‘Paddyzz’ said.

Market experts cite retention of stocks by millers and illegal exports to other States as the reasons for the hike in the price of rice. As a rule, millers are supposed to yield 75 per cent stock for procurement. However, most of them do not adhere to the norm and stock up the grain for speculation. According to sources, grain from Chittoor and Nellore is being diverted to Karnataka and Tamil Nadu on a large scale to avoid VAT here.

“Superfine rice, which constitutes about 40 per cent of the total output, is retained by the millers for sale in open market. The variety costs less than Rs.14 per kg when first bought from farmers. Now the same is being sold at Rs. 28 per kg. Godowns maintained by the FCI and the Civil Supplies Department can store grain up to 20 lakh tonnes, only if they wish to procure.

As per the norms, even Above Poverty Line Families are entitled to rice at Rs. 9 per kg. Nobody knows about it and the rice is being diverted to BPL families,” said Sarampalli Malla Reddy, State vice-president of All-India Kisan Sabha.

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