Close on the heels of the WPI (wholesale price index) numbers indicating an uptrend in food prices, official data at the retail level released on Friday confirmed a fresh bout of rising prices, which the consumer will have to bear for some months to come.
As per the CPI (consumer price index) data, retail inflation breached the double-digit mark at 10.32 per cent in April, primarily owing to a surge in prices of vegetable, milk, edible oils and protein-based items.
The nearly one percentage point spurt — as compared to the CPI inflation figure revised down to 9.38 per cent from the provisional estimate of 9.47 per cent for March — during the first month of the current fiscal year does not augur well on two counts.
First, it is just the beginning of the summer season when fodder prices will tend to rise and lead to a further hike in milk and meat prices. And, as for edible oils, with the rupee in a depreciation mode, imported edible oils will cost more.
In keeping with the WPI inflation data trend, the retail inflation figures also show that the surge in prices of vegetables was the greatest at 24.55 per cent in April year-on-year. This was followed by edible oils, the prices of which soared by 17.63 per cent with milk products next in line with a 14.94 per cent increase in prices during the month.
As for the protein-rich items such as eggs, meat and fish, the year-on-year increase in prices was at 9.95 per cent.
However, prices of cereals went up by a much smaller margin of 3.94 per cent during the month. Alongside, sugar turned dearer by 4.32 per cent in April at the retail level while pulses were costlier 6.03 per cent as compared to the same month of 2011.
According to the CPI data, inflation rates for rural and urban areas were estimated at 9.86 per cent and 11.10 per cent, respectively, for April while the revised figures for the two segments for March stand pegged at 8.70 per cent and 10.30 per cent, respectively.
Keywords: vegetable prices, inflation, retail inflation
The governments role is to make policy and do the administration and not doing business. Then the question is how to control inflation by not doing business? If RBI revises CRR or REPO rate (not talking about price hike of diesel, that used in transportation) prices of Fortune Mastard oil and Amul Milk increases. Suddenly some of the retailers stop keeping Nature Fresh Mastard oil in their stores. Is it fair? Can the government make any such policy to stops these kind of oppotunistic business practices? Do these increased price reaches to producer or manufactures of these product? Should these remain same if goverment start procurement to selling of these kind of essential items?
The one commodity which has suffered most by falling prices is coconut.Coconut farmers in
small scale sector are the worst hit.There are no takers for the matured nuts.The current
price of coconut in Kerala is less than Rs.3/ nut.With coconut climbers charging a minimum
of Rs 25/ tree to climb and harvest the nuts and that also with a lot of calls and
requests,coconut farmers are in trouble.The Cochin based Coconut Development Board
should come foreward with help from other related organizations to procure nuts on a
minimum price and market oil and cake through established marketting channels.I also find
that prices of onion and potato have gone down in Aluva whole sale market.
Its unfortunate to see the prices are rising without control. The money
is not getting to end farmers nor to people who really struggle but
going to middle men. A clear and long term policy of retail marketing
should be developed as in other developed countries.
Can this report be sent to the Dy.Chairman of the planning commission?
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