NEW DELHI: An almost 7.25% hike in diesel price will cause of a sharp rise in prices of food items as transporters will hike fares in view of the more expensive fuel. Sources said a heavy hike in prices of fruits and vegetables is likely to become apparent soon.
"Normally, any change in price of diesel immediately impacts prices of food items, especially since most of them are dependent on transport through several hundred kilometres. Like Delhi and other big cities get most of its vegetable and fruit supply from nearby states or small villages in some cases, even as far as south India.Transporters will factor in this hike in the overall costs. While the actual increase might not be significant per kilogram of vegetable, the marked price is set to rise disproportionately," said Brahm Yadav, chairman, Delhi Agriculture Marketing Board.
"Normally, any change in price of diesel immediately impacts prices of food items, especially since most of them are dependent on transport through several hundred kilometres. Like Delhi and other big cities get most of its vegetable and fruit supply from nearby states or small villages in some cases, even as far as south India.Transporters will factor in this hike in the overall costs. While the actual increase might not be significant per kilogram of vegetable, the marked price is set to rise disproportionately," said Brahm Yadav, chairman, Delhi Agriculture Marketing Board.
Lets talk about about the other phase, the percentage of population who is living marginally above of the poverty level will automatically touch the line of poverty or will come under poverty line due to 7.25% price hike of fuel as per economics equation.