Kerala - Kochi   

Price rise presents a grim scene

KOCHI: A lean rainy season upcountry, reports of significantly shrunken acreage under cultivation, swelling domestic demand and possible hoarding have combined to trigger an unprecedented price fluctuation in the pulses market over the last month.

Kerala, comparatively insulated from this all-India phenomenon, may not rest easy in the run up to the festival of Onam when consumer demand peaks over a protracted period.

Market sources say the price rise has been sharper in north Indian States but the common man here too has been hit hard as it has been the sharpest for items of mass consumption.

The price of urad has gone up to Rs.60-65 (for various varieties) from Rs.46-48 a kg. The price of toor dal, virtually the backbone of the vegetarian diet, has gone up from Rs.40-45 to Rs. 80-85 a kg. Green gram has seen a little less swing in price, but items such as chillies and turmeric have seen extraordinary price volatility.

However, the Kerala State Civil Supplies Corporation (Supplyco), a major market force in the State, does not foresee a major problem.

A senior official of the Corporation says that the fluctuations have been very sharp and it is difficult to forecast the immediate future. The Corporation has had a significant stock and will be entering the market again later this month. The Corporation has a well-oiled purchase mechanism to make the best out of any situation.

The Corporation has made use of the incentives being offered by the Central government to ease the supply situation for pulses through imports. An official says that the Corporation has already bought 3,000 tonnes of green gram and 1,200 tonnes of Bengal gram.

More than the increasing consumption and short supply, it is possible that stocks are being cornered by speculators, alleges a veteran wholesaler here.

He says the government has now removed any cap on holding stocks and it is possible that some people are misusing it. Speculation is also triggered by online trading in some of the items that have seen recent price volatility, he added.

Along with pulses, chilly has seen significant price volatility. According to Supplyco information, chilly price has gone up to Rs.68.40 a kg (Kerala average) in the open market.

However, there is some consolation in the fact that the price of rice has eased slightly over the last month, largely because of free flow of rice from Andhra Pradesh, says A.P. Johny, president, Grain Merchants’ Association, Mattancherry. He says the rise in the price of pulses and other items has seen trade falling by about 30 per cent.

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