Rising Grocery Costs Strain Household Budgets in Odisha - Odisha Pulse
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Rising Grocery Costs Strain Household Budgets in Odisha

Rising Grocery Costs Strain Household Budgets in Odisha

Bhubaneswar: The financial burden of preparing daily meals has intensified as the prices of nearly all essential grocery items, including rice, pulses, sugars, and cooking oils, have escalated over the past month. This rise is further compounded by already high vegetable prices.

Among the essential items, sugar has seen the most dramatic spike, although it is not the only commodity affected. Mustard oil now costs over Rs 190 per litre in the state, with prices for imported palm, soybean, and sunflower oils also on the rise. Additionally, wheat and wheat-based products like suji (semolina) and maida (refined flour) have become more expensive.

In a state known for its rice consumption, the wholesale price of rice has climbed by Rs 500 to Rs 700 per quintal, adding to household expenditures. For pulses, urad dal has experienced the most significant increase, retailing between Rs 110 to Rs 120 per kg, while arhar, moong, and masoor have only seen minimal increases of Rs 1 to Rs 2 per kg.

Onion prices have surged as well, increasing approximately 25% from Rs 28 per kg to Rs 35 per kg over the last month. In contrast, potato prices have remained relatively stable at around Rs 20 per kg.

Sudhakar Panda, general secretary of the Odisha Byabasayee Sangha, estimated that the total cost of preparing a daily meal has risen by around 5% to 7% statewide. He attributed the spike in sugar prices to two main factors: monthly sugar stock releases by the government and the diversion of sugarcane for ethanol production. “At the end of every month, sugar mills provide stock details to the Centre, which determines how much will be released into the market. If the released quantity is low, prices inevitably rise. Moreover, a significant amount of sugar is being used for ethanol blending, leading to a nearly Rs 1,000 per quintal increase in wholesale sugar prices, roughly a 25% hike,” he explained.

Prafulla Chotray, secretary of the Cuttack Chamber of Commerce and a trader at Malgodown, discussed the increase in rice prices, noting that consumers are shifting preference from parboiled rice, which is abundantly produced in Odisha, to raw rice. This heightened demand, along with supply issues from other states, has driven prices up by Rs 500 to Rs 700 per quintal for various types.

On the topic of pulses, Chotray mentioned that prices are largely influenced by sowing and production in the states from which Odisha sources its supplies. “If sowing is poor, traders tend to hold stocks, anticipating higher prices. Conversely, good production leads to stock releases into the market. Reports suggest that sowing of urad, arhar, and masoor has been negatively impacted in the producing states, which could maintain elevated prices,” he added. Traders express concerns that prices for rice and pulses could further rise amid fears that an impending El Niño might impact crop production in the upcoming season.

According to Panda, the increase in edible oil prices is mainly due to soaring international prices and rising import costs. He noted, “Mustard oil has become pricier as mustard seed prices have surged by about Rs 1,000 per quintal.”

This wave of rising grocery prices coincides with persistently high vegetable prices, driven by weather-related supply issues and reduced arrivals in wholesale markets. Items such as tomatoes, green chilies, beans, and various leafy vegetables continue to be sold at significantly elevated prices compared to just a few weeks ago, further straining household budgets.

Consumers have expressed frustration over the compounding hikes in grocery and vegetable prices. Bhubaneswar homemaker Nibedita Samal stated, “Previously, only vegetables were expensive, but now even basic grocery items are costing more. Each market visit results in higher expenses. Additionally, the rising costs of petrol and diesel are exacerbating the situation.”

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