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Updated: 05/04/2008 | 01:46 PM IST
Inflation climbs to 7%; common man hit hard
Kishalay Bhattacharjee
Saturday, April 05, 2008 (Guwahati)
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Inflation is at a three-year high and it is one crisis that has spared no one from the lowest to the highest income groups.

If vegetable prices are shooting up because of lack of regulations essential commodities like rice, pulses and edible oil are becoming unaffordable for the average man thanks to bad economics and hidden costs.

With vegetable prices shooting up you may have struck tomatoes out of your diet but how do you replace rice, dal and edible oil?

In the last fortnight basic food has become a luxury. Joha rice the favourite in Assam has shot up by Rs 6 and common rice has moved up by almost Rs 3.

No meal in India's estern states is complete without dal (pulse) but the Chakrabortys have improvised the dal recipe by throwing vegetables into it to beat the rising prices.

In the last one month pulses have shot up by Rs 15 across the range and is expected to rise further.

But you can't escape this – edible oil. Chakrabortys need 35 litres of edible oil every month and now they are paying Rs 14 extra on every litre.

"At this rate we have to change our diet and our food habits," said Sampri Chakraborty, Housewife.

But why do prices go up? Petroluem is just one of the factors but traders say it is simply bad economics.

"One of the main reasons is the National Commodity Exchange which was set up by the government where big traders sell commodities two months ahead at higher prices. The farmers gets nothing and this exchange must shut down to cut down prices," said Ashok Dhanuka Businessman.

And when you are in the Northeast the prices can go up further. These commodities have been shifted to a different grade for higher railway freight over the last 3 yrs freight on commodities has been increased by 50 per cent.

Similarly hidden costs such as entry tax is levied on traders. Assam is the only state and has entry tax on 58 items.

International stock levels of edible oil, pulses and wheat are their lowest in the last 6-8 years. As a quickfix measure the government has restricted export of pulses. Ironically India imports 50 per cent of its pulses but the import tax has not been changed.

Cut down on rice for low carb diet less oil is anyway good for health replace pulses with other proteins and get used waking up to you cup of tea with 'chini kum'.

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