Govt increases prices of various commodities in utility stores
- Passes on impact of higher cost to consumers
In a bid to improve the demand and supply situation, the Utility Stores Corporation (USC) on Friday announced an increase in prices of essential branded items, a move that could further add to inflation in the country.
As per a notification, the price of 900 grams of tea has increased by Rs400, while the price of 800 grams of children's milk packet has been increased by Rs260, reported Aaj News.
The price of 200 grams of dried dates has been increased by Rs40. Moreover, the price of 100 grams of red chilli has been increased by Rs84, while the price of 100 grams of garam masala has increased by Rs42.
The USC in a statement said that the increase was done to ensure an uninterrupted supply of branded items at all utility stores across the country.
“The prices of some branded items have been increased, however this increase is by the branded companies,” the statement read.
Various national and multi-national branded companies supplying goods to utility stores have increased the prices of various items.
“The prices of these items had been kept stable for the last seven months,” it said, adding that the USC does not manufacture or produce items but buys from well-known and certified branded companies in the country.
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“Subsidised ghee at Rs300 per kg, sugar at Rs70 per kg and flour at 20kg bags at Rs800 are available in abundance at all utility stores across the country,” read the statement. A subsidy is also being given on pulses and rice, it added
The Consumer Price Index (CPI) surged to 27.3% on a year-on-year basis in August 2022 from a year earlier, as authorities warned massive flooding in the country could exacerbate already skyrocketing prices.
As per IMF’s staff report, the average CPI inflation is expected to surge to 20% in FY23 as international commodity prices are passed on to domestic consumers. Core inflation is also projected to remain elevated due to higher energy prices and sizable depreciation.
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