Food prices may pinch during festive season, says Assocham

Prices of food items like sugar and edible oil are expected to further increase during the festive season due to thin stocks and high demand, industry body Assocham today said. It said prices of eight essential commodities like spices, pulses, wheat, sugar, edible oil, tea, coffee and milk have risen by 18% on an average from September 2011 to September 2012. "Aam Adami is likely to suffer more on account of further price increase in the upcoming festive season due to erratic rainfall and thin stocks coupled with high demand," the chamber said in its study.

While prices of spices, pulses, wheat and sugar have become dearer by 30%, 29%, 19% and 18%, respectively, other essentials like edible oil, tea, coffee and milk saw upward moment in the range of 11%, 10%, 9% and 7% respectively, it said. The chamber also said the rise in essential commodity prices and per capita income was utterly disproportionate. As a result of demand due to upcoming festivals, inflation has taken several essentials like spices, edible oil and milk out of the common man's reach, Assocham secretary-general DS Rawat said.

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