The COVID-19 pandemic and the subsequent lock-down has created a worrisome and uncertain situation for many. Many citizens are already facing reduced household incomes due to the economic downturn and job losses, and the doubling of vegetable prices of the past few days is pinching their pockets even more. The Central government, in collaboration with various state governments will have to take immediate actions to ensure that the prices of these essentials are brought under control so that citizens can have a sigh of relief, says LocalCircles.
A survey conducted by LocalCircles reveals, as many as 73% households are now getting less value for the same or more money spent, in comparison to pre-COVID-19 times. In fact, 61% households are currently paying more than Rs60 per kg for tomatoes, Rs30 per kg for potatoes and Rs25 per kg for onions.
Consumers in March and April 2020 had reported being charged higher prices for essentials like vegetables as well as packaged products where some were charged above the maximum retail prices (MRP) due to shortages in the markets due to the lock-down and panic buying.
This year has seen an extended monsoon season in India resulting in heavy rainfall and large-scale flooding in many parts of the country. The extended rains have brought some bad news for the consumers and there have been reports of vegetable prices rising by as much as 50% in states like Delhi, Uttar Pradesh, Madhya Pradesh, West Bengal and Chandigarh.
“The main cause of this steep prices rise of vegetables is being attributed to excessive rain, labour shortage and also an increase in transportation cost due to the higher diesel prices. This is especially worrisome as many have lost jobs and many others are experiencing a cut in earnings and wages. As per the latest data from the Centre for Monitoring Indian Economy (CMIE), 21 million jobs have been lost till August 2020 from the time the pandemic began. For many, the increase in the prices of essentials is adding up to higher weekly spends,” LocalCircles says.
The meteorological department has called the monsoon season ‘normal to above normal’ and has said that the country will receive more rainfall in September as the monsoon retreats.
LocalCircles conducted a survey to understand how people’s experience has been with purchasing essential vegetables, especially onions, potatoes and tomatoes after consumers reported rising prices over the past couple of weeks. Also, LocalCircles tried to understand if consumers are spending more on essentials and groceries since the COVID-19 pandemic started.
The survey received over 15,000 responses from 216 districts of India covering metros to tier-4 districts and rural locations.
In the first question, citizens were asked what best describes the per kilogram price that they paid for tomatoes, onions and potatoes in their latest purchase. In response, 40% said they paid Rs70 or higher for tomatoes, Rs35 or higher for potatoes and Rs30 or higher for onions, while 21% said they paid Rs60-69 for tomatoes, Rs30-34 for potatoes and Rs25-29 for onions. About 19% said they paid Rs40-59 for tomatoes, Rs20-29 for potatoes and Rs15-24 for onions, whereas 7% said they paid Rs39 or lower for tomatoes, Rs19 or lower for potatoes and Rs14 or lower for onions. As many as 13% were unsure about what they paid recently.
The next question asked the consumers, “In the last 6 months, how have your monthly household grocery and essentials costs changed?” In response, 44% said they have been spending more and getting less. Around 10% said they have been spending same and getting less, 17% said they have been spending same, getting same, while 19% said they have been spending more and getting same. Only 2% said they have been spending less and getting more and another 2% said they have been spending less and getting same.
Crop damage due to heavy rains and hoarding are also being suspected as a reason for this sudden price rise in vegetables, the survey shows.
