Price rise, inflation and peoples pulse

  • 23/04/2008

  • Assam Tribune (Guwahati)

Surging prices of essential commodities of daily consumption such as rice, potato, onion, mustard oil, vegetables and so on, at regular or long intervals has been a common phenomenon in our society over the decades. It comes about when both supply and demand go off from the equilibrium position. Whatever it may be, the fact of the matter is that every time the prices of many of these basic items soar, every time it is the common man who is hard-hit, simply because it creates some damaging effect on his shoe-string monthly budget with which is has to run his family. Nevertheless, when price-hike is moderate and at long intervals, there is hardly any hue and cry among the people on the issue. But when it does rise abnormally, quite naturally, the reaction triggered by it, among the people is strong and widespread, as it has been this time with the recent steep rise in prices throughout the country of all the essential commodities, having literally touched the apogees as mirrored in the inflation surging by a record high of 7.41 per cent. Needless to say, the country has of late witnessed great hullabaloo everywhere, even in Parliament on the issue. Opposition parties have held rallies, meetings and staged protest demonstrations in many parts of the country voicing deep concern over the Central government's alleged failure to check the abnormal rise in inflation and prices of all the essential items of daily use. Interestingly, the Left parties including the CPI(M), that are supporting the ruling United Progressive Alliance (UPA) at the Centre from outside have also jumped on the bandwagon, and threatened to withdraw support if it fails to bring down the prices of the basic items. Back home, in Assam, and several other States of the north eastern region, too, the people in general have reacted sharply to the sky-rocketing prices of the essential commodities such as edible oil, dal of all varieties, atta, begetables to name a few, like those in several States of the north eastern region including Manipur and Meghalaya. In Assam, there was uproar in the Assembly during its recent budget session with the opposition members gunning for the State government for what has been termed as "its indifference' towards the problem. Broadly speaking, the rapidity with which the prices of all these items have escalated in Guwahati and many parts of the State barely a few days ago goes induce a strong feeling that if the current upward trend continues unbridled for a longer spell with no sign in sight at the end of the tunnel of their declivity in the immediate future, how severe pinch will the people from the lowest strata of the society feel in organising two square meals a day does need no explanation. It is true that the prices of essential commodities that have shot up are something that is today not confined to a State alone. It has today become a national problem. If viewed from that very perspective, Assam in any town or city in the State is high, in fact, it is much higher compared to many other cities outside the region simply because most of the necessary goods such as potato, rice, dal, mustard oil etc, are imported to Assam from such far away places as Nashik in Maharastra, Madhya Pradesh, West Bengal and several other States with transportation costs, road taxes etc. Therefore, the price of any of these commodities tend to rise when it enters the city becomes higher than what it is at its source. But this time the prices of these items are essentially exorbitantly high in the retail markets' of many prices of the State including those of Guwahati. Needless to say, the common people are more concerned with these markets than the wholesale ones. After all, they buy things as usual from the open markets. And, it is there that the prices are now-a-days sky-rocketing. A casual visit to a grocery shop in Guwahati will reveal how each of the consumers' goods, rice, mustard oil, or dal of any variety, be it mug or masur, becomes dearer by an amount varying between Rs 7 and Rs 16 per kg. In other word the price of each of these items is much higher now than what it was during the corresponding period last year. Barely six months before, the cost of medium quality of Barpeta Aijong rice in the city's retail markets was between Rs 14 and Rs 16 a kg, but now the same variety costs anything inbetween Rs 17 and Rs 18, if not more. Indeed, the super quality Barpeta Aijong's price is also much higher, selling for Rs 21 to Rs 24 a kg. The price of Madhya Pradesh's medium quality Aijong has also increased by Rs 4 and Rs 5 per kg. Although the price of potato has gone down considerably over the past couple of weeks in the city, being as low as Rs 5, as it is this time around every year, those of mustard oil and dal of all varieties are now incredibly high. Mustard oil, of Engine brand which was sold at Rs 72 a litre is now selling at an exorbitant price of Rs 93. Nest comes Anupam oil. Its price is also much too high. It costs now Rs 73 a litre as against Rs 57 or Rs 58 a few months ago. Last January/February, Anupam variety oil was sold at such a low price as Rs 55, but it is now being sold for as high as Rs 73 a litre. For the common people, mug or masur dal has ever one of the principal foods just as rice that is why they buy them irrespective of costs. But their prices have risen so fast in the past couple of weeks that most of them, especially those from lower-middle and under-privileged classes are in a fix what to do. They would visit shops, ask the prices and then compare them with other available varieties before deciding to buy. Undoubtedly, it is a good method to market survey in the quest of low prices. But, hardly anywhere in Guwahati will they find Mug and Masur dal available at affordable prices. Eerywhere Mug dal which was Rs 32 a kg in the regular market until three months ago, is now selling at prices varying between Rs 36 and Rs 38. As for Masur dal, it used to be anything between Rs 34 and Rs 36 a kg till a few months before. But, its price is now much too high. It has increased by about Rs 10 to Rs 20. The prices of Anupam, Nivaj Engine oil, popular brands in the State are fixed; so the retailers sell them at the fixed prices, and cannot profit much from them. But, there are many perishable consumers' items such as rice, dal, atta, etc; the prices of which never remain static in the retail markets of Guwahati, even if there is steady supply and the situation is salubrious. If one retailer sells one of these commodities at a reasonable price, another does it at his whims and fancies. This happens whenever there is a little laxity in monitoring on the part of the concerned authorities. Worse, once their prices soar, in Guwahati's open markets, they seldom show any sign of going down in spite of the supply position being more than satisfactory in the approaching days. However, in the current gloomy market scenario, one gratifying aspect is that the prices of other items such as atta, sugar etc, have not risen much. They are still within the reach of ordinary people. But, what they are supposedly very much worried about is flood. If there is flood in the State this time, people will find it difficult to meet barest domestic needs of life because unscrupulous traders and retailers will seize the opportunity as they do in a similar situation like this and hike the prices of foodstuff at their will. During flood we have seen how fast prices rise, regular supply notwithstanding. However, in this hour of grave crisis, salvaging the ordinary people from the spell of unprecedented price-hike and inflation should be the top priority of the State government. This it can do by fixing up prices of all the essential items of daily use, and taking to task those traders/retailers who defy its order to sell them at fixed process. If the government initiates such preventive measures, the buyers can easily save at least Rs 2 or Rs 3 from each of the purchased items from retail markets. But, hardly anything will fructify unless the State mechanism of monitoring and policing is strengthened.