Onam purchases to burn hole in wallets as prices soar

Soaring prices of essential commodities, including rice, are likely to burn a hole in Keralites’ pocket as Onam purchase season is round the corner. Markets across the State have been witnessing a surge in prices of different varieties of rice for the past few weeks, causing concerns for both traders and consumers alike.

Matta, the most popular rice variety used in the State, cost ₹60 a kg in Kochi in wholesale market, while Surekha was priced at ₹43 per kg and Jaya at ₹47 a kg, as of last weekend. The prices have seen a jump between ₹4 and ₹10 for different varieties in the past three weeks in the wholesale market, making the impact worse on household consumers, according to traders in Kochi.

Similarly, the price of sugar in wholesale has shot up to ₹54 a kg on as of last weekend as against ₹48 three weeks ago. “There is no clarity yet on what causes the upward trend. While the alleged hoarding of paddy by mill owners in Andhra Pradesh, anticipating a fall in crops next year, is blamed for the hike in prices of rice, hearsay is that aggressive diversion of sugarcane to ethanol production has contributed to sugar getting dearer,” Sanoob Abdulkhader, a leading provision wholesaler in Kochi, said.

The price of coconut oil, a key ingredient of Onam sadya dishes, including the signature banana chips, has also been in higher brackets, with the retail price remaining above ₹300 a kg. “The price may look lower compared to the last season, when it had crossed even ₹500 per kg. However, our assessment is that this time the price should have been further lower considering the increase in crop supply,” Al-Zamil M.K., an oil wholesaler based in Kochi, said.

Thalath Mahmood, president of the Cochin Oil Merchants Association, alleged that the price was artificially created as the ongoing harvest season in several producing States had ensured adequate availability of copra. He said the price had remained steady over the past few days with procurement agencies reportedly withdrawing from purchases following the price surge. “Traders in Kottayam and Pathanamthitta have also backtracked from purchases following the damage caused by the recent rain. The price is expected to stabilise in the coming days,” he said.

Vegetable markets are also feeling the heat of higher prices, with raw banana, which is used to make chips, priced at between ₹75 and ₹80 a kg across the State. Traders fear it may become more expensive by next week.

Govt. intervention sought

The Vyapari Vyavasayi Ekopana Samithi (KVVES) has urged the government to intervene in the market immediately in view of the rise in prices of essential commodities. “The price rise would reduce consumption and, consequently, lead to a significant decline in traders’ income. There is suspicion that the rise in rice prices is the result of a nexus between mill owners and middlemen in Andhra Pradesh,” Raju Apsara, president, KVVES, said. “Onam would be difficult for both people and traders if the government did not intervene immediately,” he said.

Minister for Food and Civil Supplies Anoop Jacob said the government was taking all steps to curb price rise. “The government is purchasing rice at ₹23.20 per kg from the Food Corporation of India through the open market sales scheme and selling it at ₹26 a kg to provide additional share of ration to consumers in different categories. This month, 1,65,932 tonnes of rice and 24,506 tonnes of wheat have been procured for distribution,” he added.