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Retail food prices up by 40% in 4 metros; Delhi worst hit

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    Life in the four metros in the country is getting tougher for poor and middle-class consumers as their budget for grocery and other food items have shot up by almost 40 per cent in the last one year, with Delhi being worst hit.

    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.

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    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.

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