Food for thought: Eating out likely to get expensive

Another fuel price hike — this time diesel — is set to pile on common man's woes by pushing up the grocery bill, besides making eating out more expensive.

The Rs5 hike in diesel price, the biggest in recent times, is likely to make commodities dearer by 5% to 10%; and if there is no rollback in diesel price, many hotels in the city may increase prices of food items by 5% to 10%.

According to Vasudeva Adiga, president, Bruhat Bangalore Hoteliers' Association, the diesel price hike will have an adverse effect on hotel industry due to increase in freight charge by transporters. "The hotel industry is already facing a lot of problems due to rise in workers' wages and LPG prices. Many hotels have effected price hike recently. The hike in diesel price will make others, who are yet to effect a price hike, take a decision on prices as early as possible,'' said Adiga.

Many traders at Agricultural Produce Marketing Committee (APMC) yard, Yeshwantpur, said that all essential commodities might become dearer in the coming months. "It was not the right time for the government to effect a hike in diesel price. The state is reeling under severe drought and agricultural production is expected to come down,'' said Ramesh Chandra Lahoti, president, Bangalore Wholesale Food Grains and Pulses Merchants' Association.
Echoing this view, Bharat Shah, vice-president, Bangalore Wholesale Food Grains and Pulses Merchants’ Association, said the price of rice is expected to go up by Rs3 to Rs5 per kg. The increase in price will vary from one area to another depending on the distance from the wholesale market,' said Shah.

According to Chand Basha, chairman, Bangalore City Lorry Transport Agents' Association, the hike in diesel price will affect transport agencies' revenue.

"As of now, transporters are under tremendous pressure due to various reasons. We're facing lot of problems due to toll collection by various agencies. One has to spent Rs500 extra on diesel to transport goods from Bangalore to Chennai, apart from paying Rs2,500 towards toll. We have decided to support the Bharath Bandh on September 20,'' said Basha.

Expressing concern over the hike, K Shiva Shanmugam, president, Federation of Karnataka Chamber of Commerce and Industry (FKCCI), said the cascading effect of the rise in prices would push up the prices of essential commodities. "The hike in diesel price will increase transportation cost and thereby increase commodity prices. At the time when Karnataka is facing power shortages, the hike in diesel price will make usage of generators expensive thereby adversely affecting the farmers,'' said Shanmugam.