Onam purchases to burn hole in wallets as prices soar

As the Onam shopping season approaches, prices of essential goods in Kerala have surged, creating financial strain for households. Essential items such as rice, sugar, coconut oil, and vegetables have seen sharp increases in their wholesale prices, raising concerns among both traders and consumers. Rice prices have risen significantly in the past three weeks, with Matta, the most commonly consumed variety in the state, reaching ₹60 per kilogram in Kochi’s wholesale markets. Other popular types, including Surekha at ₹43 per kg and Jaya at ₹47 per kg, have also climbed, marking an increase of between ₹4 and ₹10 per kg. Sugar, another staple, has jumped to ₹54 per kg, up from ₹48 three weeks prior. Traders speculate that the price hikes could be attributed to factors such as alleged hoarding by mill owners in Andhra Pradesh, who anticipate reduced crop yields next year, and the increased diversion of sugarcane to ethanol production. Coconut oil, a crucial component of traditional Onam meals, has also seen its price climb, with retail rates staying above ₹300 per kg. Although this represents a slight decrease from previous seasons, some wholesalers believe the price should have dropped further given the increased supply of copra. Al-Zamil M.K., a Kochi-based oil wholesaler, noted that the current pricing does not align with expectations based on available supplies. The Cochin Oil Merchants Association's president, Thalath Mahmood, suggested that the price increase might be artificial, citing the ongoing harvest season in several producing states that should ensure sufficient copra availability. He mentioned that procurement agencies have reportedly stepped back from buying due to the price surge, and that traders in Kottayam and Pathanamthitta have also paused their purchases after experiencing losses from recent rains. He expects prices to stabilize in the coming days. Vegetables, particularly raw bananas used for making chips, have also become more expensive, with prices ranging between ₹75 and ₹80 per kg across the state. Concerns are growing that these costs could rise further by the end of the week. In response to the rising prices, the Vyapari Vyavasayi Ekopana Samithi (KVVES) has called for immediate government action. Raju Apsara, the organization’s president, expressed fears that the price increases could lead to a drop in consumer spending and a corresponding loss of revenue for traders. He also raised suspicions about a potential collusion between mill owners and middlemen in Andhra Pradesh contributing to the price hikes. Apsara warned that the Onam festival could become financially challenging for both consumers and traders without timely government intervention. Meanwhile, Minister for Food and Civil Supplies Anoop Jacob stated that the government is actively working to control the price increases. He highlighted that the government is purchasing rice at ₹23.20 per kg from the Food Corporation of India under the open market sales scheme and selling it at ₹26 per kg to provide subsidized rations to consumers. This month alone, 1,65,932 tonnes of rice and 24,506 tonnes of wheat have been procured for distribution.