Food inflation pinches common man's pocket

Soaring prices of fruit and vegetables due to inflation is affecting the common man’s spending capacity.

Around 72 per cent of working parents who participated in a survey by Assocham said it has become difficult to afford the expenses raising even two children due to the steep rise in inflation.

The Associated Chambers of Commerce and Industry conducted the survey in June and July this year in Delhi-NCR, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun and Bangalore.

At least 500 people in each city, who are working in different sectors, were covered in the survey. Respondents from Delhi-NCR complained of highest inflation in food prices, followed by Mumbai, Bangalore, Ahmedabad and Kolkata.

“The fear of bad monsoon has suddenly hiked vegetable and fruit prices by 300 per cent by the time it reaches the dining table from the farm,” stated the survey on ‘rising prices widen gap between rich and poor’.

Some 89 per cent respondents complained that the price of each commodity has gone up drastically, and there is no control over vegetable and milk prices. The price of milk has doubled in the last five years.

Nearly 73 per cent respondents said the net disposable salary is not more than 30 per cent of their total earnings. The survey found that families are now spending Rs 15,000 on food, local transport, utilities, medical and education bills.

According to the survey, soaring prices of medicines is worrisome for several families. Middle income households have started allocating 40 per cent of their expenditure on food and one-fifth on rent.

Among lower income households, food accounts for 52 per cent of expenditure, while 10 per cent is allocated for housing.

According to estimates, despite a record food production of 252 million tonnes this year, prices remain high, and food inflation is as high as 10.5 per cent this year, not very different from what it was a year ago.
DH News Service