Rain depletes supplies, food becomes dearer

The rains which lashed Mumbai and its suburbs in the past week have severely hampered the supply of essential commodities such as fruits, vegetables, food grains, pulses and sugar into the city.

This is expected to result in a 20-25 per cent rise in the retail prices of these commodities in the coming week.

In the Agricultural Produce Market Committee (APMC) vegetable market in Navi Mumbai, the arrivals have a less than a third of the 10,000 trucks per day to 3,000 trucks.

The loss will cost the government about Rs 20 crore in revenue. According to Mohan Gurnani, director, APMC Mumbai, the freight rates alone have gone up by over 50 per cent. "It has gone up to Rs 75 per quintal from Rs 50 per quintal before the rains," he said.

In the APMC fruit market, the arrivals have dropped by 50 per cent in the last week, from 300-400 trucks per day. The losses are estimated at Rs 2 crore currently, and prices of fruits are expected to go up by 10-20 per cent.

Balasaheb Bhende, director of fruits, APMC, said, "In the last few days, the wholesale prices of vegetables and fruits have not gone up as there have been no customers in the market, even though supply has declined."

He added that this week demand will rise as it is the first week of the month when people buy their monthly provisions. Subsequently, once the rains stop and the roads clear, the demand supply situation will even out.

"While the fruit and vegetable market at Navi Mumbai have estimated the loss of stocks at roughly 10 per cent, the stocks of grain and pulses in the godowns at Kalyan and Panvel have been severely damaged or entirely wiped out," said Gurnani.

The losses are pegged at over Rs 120 crore in both these markets. "We are looking at claiming insurance, as well as approaching banks for soft loans to make good the losses. This is a problem the entire state is facing," he added.

Onions are selling at Rs 45-60 per 10 kg in the wholesale market, potatoes at Rs 55-65. These vegetables have not yet seen a rise in prices. However, they are expected to rise in the next week. Sugar on the other hand has risen to Rs 2,057 per quintal up from Rs 1,893 per quintal from last Tuesday.

The rise is attributed to the general supply shortage, aided by the lack of fresh arrival due to rains. The price of bananas which were selling at Rs 13-15 per dozen has now gone by Rs 2.

According to Gurnani, while the prices have not yet increased in the wholesale market, there is already a 10 per cent rise in the retail market, which is further expected to go up to 20-25 per cent. This would eventually be reflected in the wholesale prices, he added.