Business Standard

Vegetables, fruit burn a hole in the pocket as prices go through the roof

A majority of people shifts to pre-cooked and ready-to-eat food to keep their food budget intact

BS Reporter Mumbai
The skyrocketing prices of vegetables and fruit have forced changes in the lifestyles of a majority of the middle and low-income group people in India.

Over 56 per cent middle and low-income group people in India have shifted to pre-cooked and ready-to-eat food items to protect the kitchen budget from sharp increases due to costlier food and vegetables, said a study by the Associated Chambers of Commerce and Industry of India.

The fear of a bad monsoon has suddenly hiked the vegetables and fruit prices by 300 per cent from the farm to your dining table, reveals the Assocham survey on "Rising prices of fruit and vegetables", in which at least 5,000 people took part.

Over 88 per cent of the middle income group (MIG) and lower income group (LIG) find it difficult to manage the household budget.

During the last three years, the salary of an average common man has gone up by 10-15 per cent, but on the other side, prices of vegetables have also gone up by 250-300 per cent.

The survey was conducted in cities such as Delhi-national capital region, Mumbai, Kolkata, Chennai, Ahmedabad, Hyderabad, Pune, Chandigarh, Dehradun and Bengalore. The maximum impact was felt in cities like Delhi, Mumbai, Ahmedabad, Kolkata, Chennai, Hyderabad and Pune. Around 82 per cent of lower middle class families have been forced to skip or squeezed their budgets for vegetables because of skyrocketing prices.

The prices of most of the widely consumed vegetables have shot up during the last two weeks in most parts of the country with the early onset of monsoon rains. The sudden increases of vegetables prices have seriously hit the common man mainly in the metro cities, says D S Rawat, secretary general of Assocham.

  The relatively affordable tomatoes, cabbage cauliflower, lady finger and potatoes basic ingredients in most Indian meals are moving away from the middle class family reach as prices continue to soar, says the survey.

Fruit have also become a luxury for the lower middle class. One spends less on buying a litre of fruit juice than a kilo of fresh fruit. Packed fruit juices appeared to be a better option for them.

Rising prices of fruit and vegetables have upset the budgets of middle and lower class families, particularly affecting those below the poverty line. The fact that prices of some of the essential commodities have increased further has created great dissatisfaction.

The rise in vegetable price has come as a double-shocker for the denizens. Tomatoes are selling at Rs 60 a kilo, with ladyfinger at Rs 50 a kg and brinjal at Rs 40 a kg. Apart from these vegetables, capsicum is being sold at Rs 80 a kg, bitter gourd at Rs 80 a kg and gourd bottle at Rs 20 per piece. Though cauliflower and cabbage too are available in the market, vendors are extracting anything between Rs 55 and Rs 60 for a small piece.

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First Published: Jul 06 2013 | 9:30 PM IST

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