Friday, 17 August 2012

Cycle of soaring prices:

Soaring prices are quite cyclic an order –one solitary increase multiplies many a times to assume a gigantic shape. Who suffers the most? None in business community at least, as they are the people who virtually take the full advantage of any price increase. Suppose their cost of material in the market is raised by, say 15%, they increase the prices for their products by 20%, if not more. So are the transporters; they curiously wait for rise in petrol and diesel, and at the first opportunity available to them, they enhance their fares and freight charges by, say 20%, more than the actual increase. Halwayees (traders in sweets) are the ones not to lag behind. Their rasgullah (a round shaped sweet ball), with a price tag of Rs.3.00 per piece at a shop in my locality is now priced at 10.00 per piece. The people otherwise belonging to the lower rung of the society too are jolly well giving a tough competition on such a price war. A rickshaw puller, who charged Rs.5/ for a certain distance, is now demanding Rs.15/ for the same trip. If a farmer increased his price for wheat, rice or pulses by, say 10%, their cost range in the market is raised by 30%. Big brands, however, are somewhat moderate, as their rate increase is more or less reasonably commensurate with the general rise in different rates. Worst sufferers are the people belonging to salaried class, whose wages are never increased with every rise in the prices. Their D.A.(dearness allowance) is of course reviewed in upward direction to some extent, but it happens only after the official rates of different commodities are announced by the governmental quarters, which in themselves are only a statistical jugglery, and are hardly consonant with the real price increase.

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