Vendors begin to feel the pinch

Grocery prices may have risen substantially over the past year but they are yet to affect grocery vendors as sales remain more or less the same, say vendors. But they might be singing a different tune soon as the prices are likely to increase even further due to the increase in diesel prices.

According to GR Shanmugappa, the president of the Federation of Karnataka Lorry Owners and Agents’ Association, the math is quite simple—the hike in transport costs means that related costs will go up. “We are not happy with the hike in diesel prices and the federation will meet in Amritsar in February and decide a course of action. A price hike in hiring of goods and commercial vehicle is very likely,” he says. This would force vendors to increase prices even further.

But for now Karuna, a supervisor of a popular food chain, insists that while her buying habits have changed due to the price hike, the outlet has so far remained unaffected by the increase. “Prices are going up for everything, including rice and wheat. However, the customer base has not really reduced as they don’t have a choice. But since I am earning only `10,000 per month I am finding it hard to afford rice,” she says.

The sales at a wholesale outlet which sells commodities for less than the markup price have actually increased.

“People are buying more because we sell at a price that is lesser than what you get in the market. But since the market prices have increased, we have also increased the prices a bit. Still during special sales people show up in hordes to stock up,” says an employee.

However, independent vendors are starting to feel the crunch as KS Sathish, who runs a juice stall in Shanthinagar, says that he is in fact struggling with the price hike.

“Prices increase every month but I can’t keep increasing the price of the juices. I sell accordingly or I would stand to lose a few customers I already have. As long as the prices go up for only a few varieties of fruits, we can manage but if the prices go up for the majority of the fruits, then we will be left with no choice but to increase our prices too,” he says.