CHENNAI: A sharp rise in wholesale prices of pulses, spices, rice, ghee and several other essentials has begun squeezing household budgets in Chennai, with consumers cutting corners and switching to cheaper alternatives.
Toor dal recorded one of the steepest increases among pulses, with the wholesale price rising from Rs 126 a kg in September to Rs 143 in October. Urad dal climbed from Rs 120 to Rs 128, moong dal from Rs 106 to Rs 112 and gram dal from Rs 80 to Rs 90.
R Punniyappan, a trader at the Koyambedu Wholesale Food Grain Market, said pulse prices have increased by Rs 10 to Rs 15 a kg this month due to rainfall deficits.
"Crop failures across major cultivation regions in Karnataka, Telangana, Andhra Pradesh and Maharashtra have drastically reduced stock levels. Increased festive season demand has further aggravated the shortage. Price relief depends entirely on rainfall and is unlikely before Pongal," he said.
Spice prices have also risen sharply. Gundu chilli leaped from Rs 330 to Rs 420 a kg, while long chilli went from Rs 275 to Rs 290. Coriander increased from Rs 190 to Rs 210.
The price of fine varieties of rice, including Ponni, commonly consumed in Tamil Nadu, has crossed Rs 70 a kg from Rs 55-60 previously. Basmati rice is now at Rs 122 from Rs 113.
K Vedhavalli, a homemaker, said the rise in grocery and vegetable prices was making it difficult to manage the monthly household budget.
"The prices of rice, pulses, oil, onion and tomato, besides various other essentials, including milk, have gone up in the past two to three months. Our monthly budget has increased by 20% to 30%, affecting other expenditures," she said.
Meanwhile, cooking oil prices showed a mixed trend. Idhayam gingelly oil increased from Rs 425 to Rs 440, Gold Coin from Rs 330 to Rs 340 and Mantra groundnut oil from Rs 270 to Rs 280.
In contrast, sunflower oil prices declined. Gold Winner fell from Rs 182 to Rs 170, Sunland from Rs 178 to Rs 168 and Fortune from Rs 180 to Rs 170.
Ghee prices saw an upward trend. Idhayam ghee rose from Rs 680 to Rs 825, while GRB increased from Rs 800 to Rs 825 and Dodla from Rs 600 to Rs 620.
P Saravanan, a grocery store owner in Vadapalani, said higher wholesale acquisition costs and stockists holding large inventories were contributing to the price rise.
The price rise has also changed buying patterns, Saravanan said. Families that earlier purchased 1 kg of essential staples were now buying only 250 grams, while purchases of toor dal had fallen from 2 kg to 1 kg. Consumers were also increasingly switching from rice to vermicelli to reduce their grocery expenditure.
With festive demand adding to supply pressures, traders expect prices of several staples to remain high in the coming months, with any significant correction dependent on improved agricultural output and supply.