Increase in the prices of vegetables and essential commodities in the last two weeks in Erode district is a concern for the people here.
Traders say the upward price trend is expected to continue for another one month.
The wholesale price of fine quality tomatoes, which was hovering between ₹30 and ₹40 a kg, two weeks ago, touched ₹100 a kg this week. Green chilly is sold at ₹120 a kg, brinjal at ₹80 a kg, and small onion at ₹70 a kg at the wholesale market.
“The price of major vegetables had gone up by over 50% in the last one week while other vegetables had gone up by over 30%,” said Ibrahim, a wholesaler at the Nethaji Daily Vegetable and Fruit Market.
High winds had desiccated the flowers in crops and that is affecting yield. Hence, arrival of vegetables, particularly tomatoes, has dropped significantly, he said.
Another wholesaler said the arrival of tomatoes dropped from 3,200 boxes, each weighing 15 kg, to less than 1,500 boxes. “Increase in demand due to marriage season, high wind and insects affecting crops are also a reason for drop in arrival of vegetables to the market,” the wholesaler added.
Tomato rice that was sold at the police canteen at the District Police Office was stopped for the last three days after the price of the vegetable skyrocketed.
A hotelier on Mettur Road said they have stopped serving items made of tomatoes and were unable to bear the increase in cost of vegetables, toor dal and other essentials. “We cannot compromise on food quality. But, we were unable to increase the prices of food items, too, as we may lose customers,” he said.
T. Pushpa, a homemaker, was of the view that expenses towards milk, vegetables and essentials had gone up significantly making it difficult for them. “There is no substitute for vegetables and we cannot compromise while buying essentials,” she added.
Hotels in Krishnagiri hit by price hike
P.V. Srividya reports from Krishnagiri: “At present, we are running on break-even and at best can sustain for a month at current inflationary prices,” says T. Gobikannan, managing partner of Mangalam hotel here. As the prices of essential commodities, including vegetables shoot up, hotels are facing the heat, he says.
COVID-19 eliminated existing hotels, allowed new entrants some of whom faded away and some of these sustained but at bare minimal profits, says Mr. Gobikannan.
When the prices were hiked on the catalogue post-COVID-19, hotels lost 30% of customers, some of whom returned later. But there is still a loss of 10% of customers.
Today, at the current rate of inflation, hotels can sustain for a month without increasing price of the food items. But, thereafter hotels have to hike the price of food, he says.
Mangalam’s management tried to undercut the price hike by attempting to source vegetables directly from the farmers. But that did not work as well.
“The break-even will end and if the price rise continues we will have to hike prices based on a calculation, which will also affect our customer footfall,” he says.
