Families struggle as India food prices soar

By Shilpa Kannan
BBC News, Delhi

Rising rice prices are causing unrest

In Old Delhi's Dal Mandi, a whole lane of shops is dedicated to rice and lentil trading.

In these misleadingly tiny outlets, customers spend hours haggling and checking out different varieties of rice and colourful lentils arranged in little bowls with rate cards.

Once the deal is sealed and the right variety is chosen, the products appear from a hidden warehouse and are loaded onto waiting rickshaws to be carried home.

Limited supply has meant that prices have soared with threats of nationwide protests if the government does not take urgent steps to address the issue.

But shopkeeper Kisen Lal, for who says selling rice is a family business, says there hasn't been a slowdown in his trade.

"People can't stop buying rice - what will they eat? My business hasn't gone down. But most of my customers grumble about high prices and some opt to buy cheaper varieties of rice."

Rising anger

Customers however are more open in their criticism of the government.

How can middle class families survive if the prices are so high? Jasleen Singh

Housewife Jasleen Singh, 43, makes a trip to Old Delhi to buy her entire monthly grocery supplies at the wholesale market to save a few rupees.

"My local grocer is very expensive. I come here to buy at wholesale prices but now even here all the prices have increased.

"I buy 15kgs of rice and 25kgs of wheat every month. Even an increase of 20% will be a huge blow to my monthly budget. How can middle class families survive if the prices are so high?".

The government has taken several fiscal measures to try and keep prices low.

While many analysts point out that global factors like trading in commodity markets and bio-fuel production are still pushing up prices, in the bazaars of Delhi the problems are very much local.

Packiam Dorai says she is regularly turned away from the fair price shops.

People blame the government for failing to control inflation - and it is taking note of rising public anger.

The prime minister called for an emergency cabinet meeting while a worried finance minister announced severe measures including scrapping of import duties on crude edible oils and banning exports of non-basmati rice.

The price for exports of aromatic basmati rice was also raised to discourage exports.

Supply issue

One of the main reasons for higher food prices is the lack of supply.

India's per capita food grain availability has fallen back to 1970s levels.

And with inflation running at a three-year-high, India's rising prices are fast becoming a political flash-point ahead of next year's elections.

The main opposition party - Bharatiya Janata (BJP) - organised a meeting with influential farmers of Uttar Pradesh to discuss their problems - where the party's president accused the ruling Congress Party of mismanagement.

BJP spokesman Ravi Shankar Prasad says that while his party left the country with an economy of surplus, the current ruling coalition has brought about an economy of scarcity.

Poverty line

While the middle classes have been complaining about rising prices, the bigger impact is on less affluent people.

Even in urban India, the hardest hit are poor people like 42-year-old Packiam Dorai.

Working as a domestic help, she earns about $50 a month and has a family of six to feed.

She has been issued with a below-poverty-line (BPL) card by the government - entitling her to buy rice, wheat, sugar and kerosene at subsidised rates.

For this she relies on "fair-price shops" which are the backbone of India's public distribution system.

How can we afford such high prices? I have small children to feed Packiam Dorai

There are over 450,000 such shops around India, but as Packiam makes a long trek in the scorching Delhi heat to one of the outlets fair price shop, she is disappointed yet again.

The shopkeeper turns her away citing lack of stocks and Packiam says this is not the first time it has happened.

"We are always sent away. If they have no stocks what do we eat?"

She borrows money from a neighbour to buy rice at the local grocer to cook the day's meal for her children.

A typical dinner consists of plain rice with yogurt and a side dish made of fried potatoes and onions.

Though she has three young children, she can't afford to buy any lentils or fresh vegetables.

"Rich people can choose what they want to eat. We have no choice - we eat what we can afford," says Packiam.

"How can we afford such high prices? I'm forced to buy at a private retailer at nearly 10 times the cost of the government shop. I have small children to feed."