The prices are soaring up more than the income in India. The middle class are being hit hardly with the price rise.
According to a study, the prices of eight essential commodities such as wheat, pulses, tea, coffee, sugar, spices and non-vegetarian products has increased at an average of 19 percent in the last one year.
However, the household incomes have increased at the rate of 6 percent.
The study, further, says that wheat, milk and milk products are expected to have another price hike in the coming months.
The UPA government has made a promise to take necessary measures to ease price pressure.
According to Assocham’s ‘Eco Pulse’, pulses, coffee, tea and spices prices have put a heavy weight on the pocket of customers. It’s price have increased between 33.7 percent and 24.8 percent in the last one year.
Prices of wheat, milk, eggs, fish, meat and sugar rose at 8 percent. On the other hand, the per capita income has increased from Rs 19,500 in 2005 to Rs 20,700.
More demand and less supply of these food items is the main reason behind this price rise, a situation arising out of lower market arrivals and lower procurement. This is clearly the case of ignorance by the government.