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Rising Food Prices Harm India’s Poor, Middle Class
It’s 5 p.m. and customers are crowding this vegetable market in the northern Indian city of Lucknow.
Annamma Rajput listens closely to the vendors1 and then haggles2 to bring prices down. She focuses on the onion - an Indian staple3 used in nearly every dish - whose price has jumped dramatically in recent months.
“Onion was 10 rupees, 15 rupees a kg [kilogram], now it is 20, 40 something like that. It’s very expensive for the common people,” said Rajput.
And for the school coordinator4, spending more on produce, means having less to spend on other household goods.
"It is so expensive. What will we do for our other things also? We have got children, we have to bring them up - vegetables are not the basic thing for the children, isn’t it?” she asked.
India’s consumer price inflation rose to 10.79 percent in January and government figures show the price of vegetables increased by 26 percent compared to December of last year.
At the Lucknow market, retired5 geology department director S.F. Farooqui said the government’s recent increase in fuel prices is partly to blame.
“As far as vegetables are concerned, it is the impact of only oil. When oil goes up, that means the transportation cost increases,” said Farooqui.
But economists6 such as D.H. Pai Panandikar say the main reasons for stubbornly high food inflation are neither the high cost of transport, nor - as in the case of the onion - last year’s drought in parts of the country. He said it's a simple issue of supply and demand.
“With the improvement in incomes, people are shifting their consumption patterns from food grains to fruits, vegetables, meat, milk and so on,” said Panandikar.
Panandikar said the government can take certain steps, though, to increase supply and ease prices.
“For instance, the government can give loans at cheaper rates of interest for dairies so they can develop really fast, one thing they can do. The second thing is to give vegetable growers or fruit growers better seeds with high productivity,” said Panandikar.
Meantime, analysts7 say food inflation not only is hurting people’s wallets; it has a broader effect on the economy.
More money spent on food means less to spend on clothes and other goods. And low consumer demand is causing India’s industrial production to continue shrinking, contributing to a gross domestic product that is expected to drop to 5 percent for the fiscal8 year ending in March - the lowest GDP in a decade.
1 vendors | |
n.摊贩( vendor的名词复数 );小贩;(房屋等的)卖主;卖方 | |
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2 haggles | |
n.讨价还价( haggle的名词复数 )v.讨价还价( haggle的第三人称单数 ) | |
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3 staple | |
n.主要产物,常用品,主要要素,原料,订书钉,钩环;adj.主要的,重要的;vt.分类 | |
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4 coordinator | |
n.协调人 | |
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5 retired | |
adj.隐退的,退休的,退役的 | |
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6 economists | |
n.经济学家,经济专家( economist的名词复数 ) | |
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7 analysts | |
分析家,化验员( analyst的名词复数 ) | |
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8 fiscal | |
adj.财政的,会计的,国库的,国库岁入的 | |
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