Chandigarh, September 11
Inflation is in the negative but that hardly appears to be affecting the prices of essential food items, especially rice. The price of basmati rice has shot up by Rs 17 a kg over the past three days, while that of the non-basmati variant has shown an increase of Rs 5 per kg.
While a kg of branded basmati rice is now available at Rs 110 (up from Rs 93 three days ago), the non-basmati rice is selling between Rs 15 and Rs 22 per kg. Notably, the hike comes amid fears of a failed crop in the wake of weakened monsoon in most paddy-growing areas of the country and government’s concern over not being able to meet this year’s production targets.
However, sources in the rice trade said the latest hike in prices seemed temporary and aimed at assuring a good return to the crop of rice that would be reaped next month. Post that, the prices may fall to the earlier level, they said.
A rice trader alleged: “The government fears a shortfall of around 10 million tonne in rice production this year. This, has led to a cartel being formed amongst rice producers who are now pushing up the retail prices.”
Not only rice, even the prices of dairy products like ghee and butter have been spiralling over the past few days. Because of the low milk production, the prices of butter have shot up by Rs 15 a kg (from Rs 88 to Rs 103). The desi ghee prices, too, have gone up to Rs 260 a kg. Sources said there was a severe shortage of milk this year. Because of the drought, milch animals were under
heat stress, leading to low production.
Drought apart, even the incessant rainfall in some parts of the region over the past few days has brought along misery for the consumers, as the prices of vegetables like potatoes, peas and radish have witnessed an increase of around 10-12 per cent. Already, the prices of pulses like arhar and moong are at a record high of Rs 85 and Rs 74 a kg, respectively.
