Vegetables Push Inflation to Double Digits

November 13 09:00 2013

Vegetable PricesNew Delhi, November 13 – Delhi residents have been fighting with inflation since long and trying to manage their budgets according to the soaring costs of everyday food products and services. Last two months have been toughest for them as veggies alone decimated household budgets. One on hand, onions touched the mark of rupees 100, while others also raised signs to worry by ranging in between 60 to 120 rupees per kilogram, be it cauliflower, eggplant, carrot, cucumber, bell pepper and lady finger.

The common vegetables like tomato and potato were almost out of the kitchen last month as soon as prices of the two rose over 60 – 70 rupees per kg and 35 to 50 rupees per kg, respectively. Soaring costs of vegetables pushed retail inflation to reach at 10.09 percent in the previous month, being the maximum in last seven months.

On the other hand, factory growth from 0.4 percent in August rose 2 percent in September. However, experts advised that it might be too soon to assume this rise as the start of industrial upturn. Being higher from 11.44 percent in the month of September, retail food inflation in October hit 12.56 percent. Most surprising is to notice that as compared to October 2012, an augment of 45.67 percent is observed in retail veggie costs in October 2013. Costs of fruits are also not a step back as an increase of 12.84 percent has been observed.

Signs of relief are not visible yet as costs of daily products are expected to remain up. Apart from higher vegetable prices, people might have to pay a bit extra for milk and milk products due to inflating cost of fodder. In the nearby future, home loans may also get expensive. All in all, situation for common man does not to become a tad easy in the coming days.

At present, onions are sold in the range of 70 to 80 rupees and tomatoes in 50 to 60 rupees. Wholesales rates also come in surprise package, offering no respite to the buyers. Chilies and corianders are not given free anymore, though one buys several kilograms of vegetable and fruits.

Adding more points to worry, rupee reached at a new two-month low on November 12, skidding nearly by 47 paise against the US dollar to 63.71. In lack of emergency measures, government completely failed to have a control over rising prices of food products. Rise in prices is apparent everywhere, be it a grocery store, clothing shop, footwear market, books and magazine stall etc. Whether you blame heavy rainfalls, floods or cyclone Phailin behind damaging of the crops, ball is not going to be in your court. Considering the current rates in mind, it is for sure that customers would have to keep on cutting down required things from monthly list, to manage their household expenditures within limit.