Negative inflation but no positive effect on city

“Over the last six months,prices of vegetables have seen a 15-30 per cent increase and the cost of vegetables like spinach,coriander and methi has almost doubled,” says Vishwas Wakadkar,a wholesaler at the market yard.

Retail prices of many items have risen by around 50 per cent,in some cases by 100 per cent,in the city ever since inflation rate started dipping from its high of 13 per cent in August 2008.

More than all these figures,what matters for the housewife is that potato is available at Rs 18 per kg,onion at Rs 13,tomato at Rs 24,cabbage at Rs 22,beans at Rs 60,carrot at Rs 28 and milk at Rs 26 per litre.

Ironically,the maximum rise has come since the WPI started dipping from its peak.

“Price of Tur dal has gone up from Rs 50 per kg six months ago to Rs 60,moong from Rs 50 to Rs 56,urad from Rs 32 to Rs 40,masoor from Rs 40 to Rs 52 and chana from Rs 22 to Rs 27. Sugar prices,of course,have been skyrocketing from Rs 18 a kg about six months ago. Now it is not available below Rs 25 a kg and rice is not available below Rs 30 a kg,” says Namita Sane,a housewife,who is till waiting for the negative growth in the wholesale price index to make life easier for her.

According to Sulabha Bramhe,a city-based economist,rates of commodities are largely region-specific and Maharashtra has always had higher prices. “The government needs to take serious steps to curb the rising prices. Karnataka,Kerala and Tamil Nadu still run the old ration system for citizens. We need to learn from them. And we do not need to invent anything; all we need is implement existing systems,” she said.

Despite only a marginal increase in milk prices,cost of milk products has seen a hike of 15-20 per cent. “Prices of butter,cream,cheese and so on have increased by 20 per cent. Butter,available at Rs 125 per kg last December today costs over Rs 150. During the month of Shravan and the festive season that follows,the cost of milk products will surely go up further,by another 15 per cent or so,” said Santosh Kulkarni,process manager,Shri Narayan,wholesale distributor of milk and milk products in the city.

Bakeries are also mulling a hike in prices of bread,biscuits and cakes. “With the cost of maida,butter and sugar going up,our profit margins have dropped. Unless we increase rates by around 15 per cent,we won’t make any profit,” said Prakash Sethi,adviser,Modern Foods.

People are also bracing for an imminent hike in price of petroleum-products,which in turn will push prices of essential commodities up.