Prices of Essential Commodities Spiral

Prices of essential commodities have risen by 15 to 20 per cent in recent weeks across Andhra Pradesh, adding to the monthly burden of households, particularly those from the lower and middle-income groups.

Andhra Pradesh has around 1.45 crore families. An average household is now spending an additional `1,000 to `1,500 a month due to the price rise, putting the overall additional burden at around `1,450 crore a month, analysts said.

The rise in rice and sugar prices has hurt even middle-income households. “We used to buy fine-quality rice at `40 a kg. Now the price is `65. If the price rises by `25 a kg, how are ordinary families expected to manage their homes,” asked N. Padmavathi, a resident of Halaharvi in Kurnool district.

Retired economics professor of Sri Venkateswara University V. Ramana said fluctuations in prices caused by inflation were a serious concern. “This is not a healthy development. The impact will be particularly heavy on ordinary households,” he said.

Analysts say the situation could worsen in the coming months due to the impact of El Nino and reduced crop cultivation this year. Onion cultivation has declined in Kurnool and Nandyal districts. Traders are importing onions from Maharashtra to meet demand at the Emmiganur market.

Allegations are that traders are artificially increasing the prices of some essential commodities.

Kurnool joint collector Noorul Qamar said strict action would be taken against traders selling commodities above the prescribed rates. “Traders should not sell essential commodities above the prevailing average prices. Rice should be sold at `56 a kg, red gram dal at `117 a kg and sugar at `57 a kg,” he said. He also directed officials to ensure that onion prices remained under control at Rythu Bazaars.

Meanwhile, efforts to sell quality fine rice at controlled prices had limited impact. Counters were opened in Kurnool and Nandyal districts in July to sell premium-quality fine rice at `52 a kg. Consumers reportedly stayed away, alleging that the rice suppliedcommo was of poor quality.

Consumers are upset that effective measures to control prices were not in place. “The prices are increasing every week, but there appears to be no effective monitoring. The government should ensure that consumers get commodities at the prescribed rates,” they said.

Retail Market: Prices of Essential Commodities