Edible oil, spices cause heartburn

MUMBAI: Onion and vegetable prices may be the focus of attention, but for weeks, the cost of common spices and cooking oil have been rising steadily. On Tuesday the price of a one-litre pouch of branded sunflower oil was selling for Rs 125 over Rs 110 last week. "Until then, it was the one-litre reusable bottle that sold for that rate. Those who preferred pouches would buy for Rs 110," says an Andheri retailer. "Now the bottle comes for Rs 135. Edible oil has becoming costlier by Rs 10-15."
Two leading brands of groundnut oil have risen to Rs 80 per litre, up from Rs 65 two months ago, says Bombay Central retailer Premji Padamshi. At Colaba, storeowner Durgesh Chowdhury has a steady clientele of middle-class Bengalis who purchase up to five litres of mustard oil every month. "Loose mustard oil that cost Rs 66 per litre at Diwali is selling for Rs 78," he says. Even branded coconut oil is selling for Rs 116 per litre, ten rupees more than last month.
The Apna Bazar store in Andheri guards its assets with care. Small pouches of cardamom, weighing 20 gm each, find pride of place near the cashier's counter rather than the crowded aisles of the supermarket. At Rs 23 per 10 gm, its cost works out to Rs 2,300 per kg, clearly one of the costliest spices and condiments selling in the country at this time.
Causing parallel discomfort is the spiral in prices of condiments and spices, particularly those that are traded on the commodities exchange. "Cardamom is only good for window-shopping with an average rate of Rs 2,300 per kg," says Sanket Khamkar of G W Khamkar store in Lalbaug. "Turmeric has risen from Rs 140 per kg a year ago to Rs 340 per kg."
Raising a flag over red chilli, retailers said that branded powder of the 'kashmiri' and 'bedgi' variety is selling for Rs 200-210 per kg, up from Rs 100-110 two months ago.
Traders and exporters blame the commodity exchange as the "main culprit" for rising prices of turmeric, cardamom as well as red chilli. Trading food items on the exchange leads to artificial price rise by encouraging speculation, they say. "The cartel puts money into purchases at the beginning of the season and determine prices for the next few months," says another trader. "They have already declared that a crop shortage of red chilli will occur this year despite the fact that the arrivals are only expected end-February."
Exporter Kirandip Singh Swani said that the commodity that was trading for Rs 45 on the wholesale market three months ago stood at Rs 85 on Wednesday. "There may be a marginal shortfall of 5-15% in production later this year but there is no logic in prices having doubled in such a short span of time," he says. Coriander may become the next casualty to speculation for it was trading at Rs 47 on the exchange Wednesday, up from Rs 20 two months ago.
(Source: http://timesofindia.indiatimes.com/city/mumbai/Edible-oil-spices-cause-heartburn/articleshow/7272915.cms)