Price puzzle leaves buyers in the lurch

KOLKATA: Buy atta from Taltala and pulses from Salt Lake. From the wholesale market to the para grocery shop, the difference in prices can be between `10 and `40. Wholesale traders at Posta claim there has been a downward trend in prices in the recent months. Retailers point to other factors for the pinch in the middle class pocket.
For over a year now, the Left Front has been hitting out at the Centre for failing to control food prices.But on its own home turf, the Buddhadeb Bhattacharjee government has not been able to restrain the spiralling prices.
At Tollygunge, masoor dal is sold at `75 a kilo. The same dal can be bought for `64 at Garia. The price of the cheapest variety of moong dal at Salt Lake is `94, while in Taltala, one has to shell out `120 to buy that.
Mustard oil can be bought for `65 a kilo in Bhowanipore and `85 in retail chain shops. In central Kolkata markets, the price of flour is `13 a kilo, while in the southern fringes of the city, it's a whopping `21.
"For the past two months, there has been a downward trend in prices. Last August, prices were at least 40% higher in the wholesale market," said Sandeep Agarwal, treasurer, Posta Bazar Merchants' Association.
"The wholesellers force prices up by hoarding essential items. This year, the fuel price hike has made the situation worse. Labour charges and transportation cost have gone up. Traders like us are not making any profits," said Joydeb Dutta, a trader.
The difference in prices of sugar varies from `1 to `2 in the city markets. "Sugar prices have come under control ever since futures trading was banned. Unless the same is done for other food items, prices will continue to fluctuate in the wholesale market," said Hanuman Prasad Jhawar, the vice-president of Posta Bazar Merchants' Association.
"There are a number of factors determining price escalation and difference. Essential items pass through a number of stages from the wholesale market to the retail shops, with the prices changing at every step. The governments may not accept it, but the hike in diesel prices are responsible for 20% to 30% cost escalation. By the time of the Pujas, the food prices might rise by another 20%," said Mahesh Singhania, chairman, Federation of West Bengal Trade Associations.
Economist Dipankar Dasgupta explained that external factor vary from one area to another and cannot be controlled. "It isn't just about the retailer going to the wholesale market, getting the commodities at one price and selling at another. The area where the shop is located becomes a deciding factor. For example, the rent of a shop in Ballygunge and another in Shyambazar is not the same," he said.
State minister for food and supplies Paresh Adhikary said enforcement officials deal with such issues. "Raids are carried out occasionally. In case of exceptions action is taken," Adhikary said.