As people scan the skies for rain clouds, life at the ground level is getting expensive. It is back to the days when pulses soared to Rs 200 per kg, only this time it is tomatoes at Rs 100 per kg, and pulses, onions and vegetables not too far behind. There are no elections round the corner, fortunately, or the ruling party’s numbers might have suffered in inverse proportion to prices. If social media posts are to be believed, some of the price hikes are manmade. The rest is because of a deficient monsoon in several parts of India last year. The governments of the affected states should have been prepared for shortages and made provisions. For instance, if it is true that at the agricultural produce market committee just outside Mumbai — where farmers sell their produce — only limited supplies are accepted and the rest returned, the government should have taken immediate action to end this malpractice and dealt with the culprits under the Essential Commodities Act.
The surge in food prices has a domino effect on spiking inflation; little wonder that the May wholesale index has come at 7.9 per cent. This, is turn, casts a cloud over the ability of the Reserve Bank of India to cut interest rates, which means neither borrowing costs or personal loans will be cheaper. Governments should be aware of this situation by now; if not, it only shows lack of responsibility on their part.
