The maximum surge in food prices was witnessed in the national capital, followed by Kolkata, Mumbai and Chennai, as per the analysis of the retail price data of 14 essential items maintained by the Ministry of Consumer Affairs. “Ideally, there should not be much difference in prices of food items across metros,” farm scientist M S Swaminathan said.
Increasing purchasing power of consumers coupled with mismatch in supply-demand are pushing prices through the roof in all four cities, he said, adding that the volatility in global food prices is spilling over on domestic rates.
According to the data, retail prices of onion, gram, rice, sugar, groundnut oil and vanaspati ruled highest in Delhi among all metros as on April 1.
Ficci secretary-general Amit Mitra said, “Delhi is worst hit by price rise among metros because it does not have a connected hinter land for food supply. With the rise in oil prices, logistic and transportation costs are fueling the food prices further.” Besides, the changing food habits on account of rising income has also catapulted the spike in prices, he said.
In the national capital, prices of edible oils and pulses shot up by 20-35 per cent in the last one year. Groundnut oil rose to Rs 121/kilo on April 1 in Delhi compared to Rs 92/kilo in Kolkata, Rs 91/kilo in Mumbai and Rs 78/kilo in Hyderabad.
Prices of the politically sensitive items like onion remained highest in Delhi at Rs 10 a kilo at the beginning of the month.
Meanwhile, in the financial capital Mumbai, wheat, atta and sugar prices surged the most. Wheat rates went up by 24 per cent to Rs 15.5/kilo compared to other metros. In south India where rice is the staple food, prices have shot up by over 40 per cent despite Andhra Pradesh and Tamil Nadu being the largest producers of grain in the country.
Rice in Chennai has become costlier by Rs 4/kilo. HDFC Bank chief economist Abhek Burua said, “Food items are priced at higher levels in metro cities because of better buying power of people.”
Whether in smaller cities or big metros, there would always be a local variation in prices, he said, adding that the spiralling prices are hitting those people living on the edge in metros the hardest.
Of the 14 food items analysed, mustard oil and milk prices rose highest in Kolkata compared to other cities. Mustard oil went up by 39 per cent to Rs 78/kilo while milk rose by Rs 4 to Rs 30/kilo in the last one year.
Similarly, milk prices ruled at Rs 20/kilo in Delhi and Mumbai. Whereas in Chennai they stood at Rs 18/kilo on April 1. Tea (loose) prices rose by 10 per cent to Rs 230/kilo in the coffee drinking city of Chennai. In other metros, prices remained in the range of Rs 100-150/kg.