Rising fertilizer cost may hit your kitchen budget
From vegetables to cooking oil and grains to bakery products high price will pinch housewives and impact on kitchen budget
Ahmedabad: Rising fuel prices have anyway hit the common man, but with fertilizer prices also in the upward trajectory, there seems to be no end to the common man’s troubles. Price hike in fertilizers and fuel will have a direct impact on the agri-economy and farmers will have to pass the cost burden to the consumers. This price hike will indirectly impact the common man’s kitchen expenses.
The country’s largest fertilizer company IFFCO raised the prices of non-urea fertilizers by up to 58% last month. The price hike comes as a blow to farmers as they prepare for the kharif season. A 50-kilo bag of the most popular nutrient DAP (Di-ammonium Phosphate) will now cost Rs 1,900 as against Rs 1,200 earlier. Similarly, the price of NPK (nitrogen, phosphorus, and potassium) will range from Rs 1,500-1,800 a bag – a rise of almost 50%.
“NPK fertilizer is key for farmers. This will raise per acreage cost by Rs 5,000” said Jayesh Patel, president, Olpad Buyer Seller Association.
The hike in fertilizer will break the backbone of 54 lakh farmers of Gujarat, say leaders of the farmers association.
Atul Kamani, president of Saurashtra Farmers Association said, “The Gujarat government gave assurance to not raise the fertilizer prices due to by-election in the state but now its over and state election due for one and half year, we are not expecting the rollback of fertilizer prices hike.”
Due to the rise in the cost of fertilizers, the farmers will be forced to hike the prices of vegetables and crops, which will impact the common man, who already reeling under the high fuel prices.
“The rise in fertilizer cost will certainly impact farmers, but how much cost they will pass on to the consumer will depend on demand. Currently, food prices are rising at an international level and this trend will reflect in India too. But the main thing is demand and it will decide the cost burden,” said Himanshu, Associate Professor, Centre for Economic Studies and Planning. Jawaharlal Nehru University.
The price of groundnut oil in Ahmedabad is near Rs.2,700/15 kg, which was Rs 2,260 in March 2020. Similarly, the price of cottonseed oil is near Rs 2,415 from Rs 1,400 in March of last year. The price of sunflower oil is Rs 2,600 for 15 litre from Rs 1,420 in March 2020.
According to the government’s latest data for March, food inflation accelerated for the second month to 4.94% from 3.87% with the cost of pulses up 13.25%.