Indian Household Budgets are Increasing As Price for Everything from Gasoline and Diesel to Vegetables, Oil, and Milk Skyrocket
Prices for gasoline, diesel, vegetables, oil, milk, and other necessities have skyrocketed across India. The price increase has sparked inflation fears and puts a strain on ordinary people. This comes from the ongoing conflict between Russia and Ukraine, which has resulted in a significant increase in international oil and gas prices.
Vegetable prices have risen dramatically. According to ANI, prices have skyrocketed with tomato, pumpkin, chilies, radish, and gourd. As per vegetable vendors and traders, price increases are the primary cause of the sudden increase in vegetable prices. Price increases also reduce demand for chicken, cooking oil, and branded basmati rice. Economic Times report mentions that while the global price of basmati rice has risen, the prices of regional varieties have spiked.
The country, which relies on edible oil imports to meet more than 60% of its domestic demand, has seen a sharp increase in retail prices of various types of cooking oils in recent months due to the global geopolitical situation. PTI reported that despite several government measures, prices have remained firm.
The average retail price of sunflower oil increased to INR 184.58 per kg on April 4 from INR 161.71 per kg on January 1. Similarly, the average retail price of soyabean oil increased to INR 162.13 per kg from INR 148.59 per kg during the same period, while palm oil increased to INR 151.59 per kg from INR 128.28 per kg. During the same period, mustard oil increased by INR 2.78 per kg to INR 188.54.
Petrol and diesel prices were raised by 80-85 paise per litre on Tuesday, bringing the total increase in the last two weeks to more than INR 9.20 per litre. This is the 13th price increase since the end of a four-and-a-half-month pause in rate revisions on March 22. Domestic LPG gas prices were raised by INR 50 per cylinder on March 22.
The Reserve Bank of India (RBI) is approximated to keep interest rates unchanged in its upcoming monetary policy review. Still, it may change its stance if retail inflation exceeds its upper tolerance limit, citing experts. The Monetary Policy Committee (MPC), which the RBI Governor leads, will hold its first meeting of the fiscal year 2022-23 from April 6 to 8. The decision will be made public on April 8. According to Aditi Nayar, Chief Economist at ICRA Limited, the MPC is expected to revise its Consumer Price Index-based inflation forecast in the April 2022 policy review.
On April 08, 2022, lemon prices in the national capital skyrocketed. A lemon seller told news agency ANI, that while INR 100 per kg is a reasonable price range, paying INR 250 per kg for lemons is excessive. People are unwilling to buy because of the high prices. Furthermore, it is difficult for them to buy at these prices, Its costs have jumped in other parts of the country due to the cyclone damage to lemon plants in Andhra Pradesh, Maharashtra, and Gujarat last year.