Food prices continue to hurt

Mumbai-based shop owner Tina Sachdev is busy defending herself. Her clients ask why when food inflation is supposed to have come down drastically, they see much change in their total budget. "Many fail to understand that while prices of some food items have come down, many others have not gone up," she explains. Many new customers, she says, also feel shop owners have jacked up prices for their own margin.

Madan Sabnavis, chief economist at CARE, says there is respite, as the rate of increase in prices has tempered. However, many are on the same page as Sachdev's clients. Even as food inflation continues to be in negative territory for the second week in a row, consumers shouldn't get their hopes too high, concur economists. In fact, it has gone up four per cent, according to data collected from the ministry of agriculture and the directorate of economics and statistics.
 

SAME PLATE, MORE PRICE Inflation impact on household budget for a family of four (husband, wife and two children), Mumbai (A very basic food basket has been taken)
Items	Consumption

Jan '11 
(Rs)** Dec '11
(Rs)** Change
(%) Vegetables & fruits** Onion5 kg2516-36.00 Potato15 kg1612-25.00 Brinjal1 kg2824-14.29 Tomato5 kg2516-36.00 Apple3 kg607016.67 Banana3 dozen242816.67 Cereals & grains    Atta 20 kg2524-4.00 Rice fine8 kg27270.00 Rice superfine2 kg3335.57.58 Moong split5 kg6462-3.13 Gram split1 kg425428.57 Dairy & meat products Milk30 litres38380.00 Eggs5 dozen364525.00 Chicken poultry3 kg85850.00 Fish (rohu)2 kg20025025.00 Edible oils & other essentials Mustard oil5 litres728416.67 Groundnut oil4 litres9011022.22 Desi ghee2 kg3804005.26 Sugar5 kg31323.23 Bread (local)5 loaves1615-6.25 Tea (loose)2 kg18020011.11 Turmeric powdered 
(Agmark)500 g182433.33 Red chilli500 g7368-6.69 Total monthly
household budget6009.466250.024.00 ** Prices per unit and for fine average quality
Source: Ministry of Agriculture and Directorate of Economics & Statistics

It is possible your budget has increased more than the one in the table. That is because the table has included the most basic food articles and the rates are in line with those in cooperative stores like Apna Bazaar and Sahakari Bhandar and those of the Maharashtra Agriculture Product Market Committee (APMC), a wholesale market. Hence, if you are a regular at branded retailers, or even at your local grocer, you can see a higher jump in your budget. The rates in the table are only indicative.

"A typical food consumption basket does not include only vegetables. There are several other items like packaged foodstuffs. And, if one breaks down the food inflation number into sub-components, the story is for all to see," says Sunil Sinha, head, economic research and senior economist, Crisil. Vegetables, onions, potatoes and tomatoes have contributed most to this negative food inflation number. However, milk, eggs and meat products have stayed firm, even showin