Rising Fuel Prices Expected to Drive Up Grocery Costs
Groceries to become costlier owing to fuel price hike, say traders
The Hindu
Image: The Hindu
Traders in Salem, Tamil Nadu, predict a rise in grocery prices due to increased fuel costs, which have surged since May 15 amid the West Asia crisis. Key staples like urad dal and garlic are expected to see price hikes, although millet prices may remain stable due to a good harvest.
- 01Fuel prices in Salem have surpassed ₹108 per litre for petrol and ₹100 for diesel.
- 02Freight charges for urad dal are projected to rise from ₹1.80 to ₹2.25 per kg, increasing its price by 50 paise.
- 03Toor dal freight charges are expected to increase from ₹2.10 to ₹2.50 per kg.
- 04Peanut freight charges may jump from ₹4.50 to between ₹4.75 and ₹5 per kg.
- 05Garlic freight charges are set to rise from ₹7 to ₹7.50 per kg, although retail prices remain lower than a decade ago.
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Traders in Salem, Tamil Nadu, anticipate a rise in grocery prices due to recent fuel price hikes, which began on May 15 amid the ongoing West Asia crisis. Currently, petrol prices in Salem exceed ₹108 per litre and diesel prices are over ₹100 per litre. S.C. Natarajan, president of the Salem Shevapet Maligai and Shop Varthaga Nala Sangam, noted that the freight charges for key commodities are set to increase. For instance, the cost of transporting urad dal from Andhra Pradesh is expected to rise from ₹1.80 to ₹2.25 per kg, leading to a potential price increase of 50 paise per kg. Similarly, freight charges for toor dal from Karnataka may increase from ₹2.10 to ₹2.50 per kg, while peanuts from Madhya Pradesh and Uttar Pradesh could see charges rise from ₹4.50 to between ₹4.75 and ₹5 per kg. Garlic freight charges are also projected to increase from ₹7 to ₹7.50 per kg. Despite these increases, Natarajan mentioned that retail prices for garlic remain significantly lower than a decade ago, ranging from ₹120 to ₹150 per kg based on quality. However, millet prices are not expected to rise significantly due to a good harvest in Tamil Nadu this year.
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The rise in fuel prices is likely to lead to increased grocery costs, affecting local consumers in Salem.
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