Essential commodity prices up 19% during July 05 to Aug 06

New Delhi, Oct 2 (UNI) The prices of eight essential commodities went up by 19 per cent on an average from July 2005 to August 2006 while the per capita income of an average Indian rose by a meager 6 per cent, according to a study.

While prices of pulses, coffee, tea, condiments and spices witnessed a sharp increase, ranging between 33.3 per cent, 33.7 per cent, 24.7 per cent and 24.8 per cent respectively, other essentials like wheat, sugar, milk, eggs, fish and meat saw upward moment in the range of 8.5 per cent, 7.6 per cent, 7.8 per cent and 8.0 per cent respectively.

The per capita income of an average Indian was measured at about Rs 19,500 per annum in 2005, and went up by about Rs 1,200 in 2006, amounting to Rs 20,700 per annum, the study conducted by industry body Assocham noted.

It added that the rise in prices of essential commodities and per capita income was highly disproportionate.

Moreover, it expected that the upward pressure will continue because of tight global market conditions. Increase in prices of wheat was estimated at over 3.4 per cent to 8.5 per cent between July 2005 to August 2006.

The increase in the prices of wheat was because of demand exceeding supply -- a situation arising out of lower market arrivals and lower procurement etc, it added.

Export of shortfall in production and procurement, and delay in revision in statutory minimum prices were some of the reasons for the rise in prices of this staple food.

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