Grocery prices start to soar

Experts blame disruption in supply chain, shortage of labour and transport issues, reasons for price rise

With the easing of lockdown, prices of essential items have seen a steady rise. Groundnut oil which was previously priced at Rs 95 for a litre, is now being sold at Rs 113 per litre. Similarly, sunflower oil which was Rs 95 per litre, now costs up to Rs 105. Experts have opined that due to the lockdown, the supply was affected and that has caused this spike in prices.

Experts have attributed this trend to the disruption in production and distribution during the lockdown. They also suggest that prices may continue to fluctuate in coming weeks, with no clarity on how the lockdown will be monitored in the days to come.

Jagannath Rao, a hotelier, said, “The lockdown has hurt us with business now only being restricted to delivery services. Now, with this increase in prices, if we increase our prices, we may lose customers and if we don’t, we will suffer huge losses. Currently, we plan to operate with the current pricing.”

However, sugar prices, which had gone up marginally, from Rs 38 to Rs 40 per kilo, have come back down to Rs 38 per kilo. Haris Mohammed, a grocery merchant, said, “The lockdown has disrupted the food supply, with labour shortage and transport issues. Additionally, the panic buying trend has also hurt the system.”

Karnataka Pradesh Hotels and Restaurants Association president Chandrashekar Hebbar told BM, “We are awaiting clarity from the government for a go-ahead to open the restaurants and then we can take a call on the pricing.”