Analysis: Why Prices Are Soaring And Possible Solutions

It's that time of the year when prices of some essential commodities go up. This is a recurring phenomenon. We do see some mitigation plans, but they are obviously not good enough to keep the prices stable. Resilient Indians change their food habits. Tomato puree sachets pass for tomatoes in dishes. The soaring prices of kitchen staples like tomatoes, chillies, garlic, and ginger have been straining the finances of the common man since May.

Data collected from various sources shows a pan-India increase in food prices, with spices and pulses also taking a hit. Vegetables like brinjal, chillies, ginger, garlic, coriander and lady's finger have all seen an upsurge in prices. The average price of ginger has been Rs 250-350 per kg, green chillies cost between Rs 170-250 per kg and garlic is selling at Rs 250-300 per kg.

Tomatoes retailing in the range of Rs 130 -200 per kg in metros and rural areas have become prohibitively expensive for housewives who use it in curries, rasam and chutneys, and the humble street-food vendors, who use it in tomato sev puri, pav bhaaji and chaats. Even the mighty McDonald's has dropped tomatoes from its burgers and wraps at some of its restaurants, citing supply shortages and quality concerns. Cumin too has become costlier, retailing at more than Rs 500 per kg.