Date:26/04/2008 URL: http://www.thehindu.com/2008/04/26/stories/2008042650480100.htm

New Delhi

Cutting corners to cut cost of living

Bindu Shajan Perappadan

With prices shooting up, salvation now seems to lie in down-to-earth compromises

NEW DELHI: Affordable “substitutes” of essential commodities including wheat, rice, pulses and cooking oil seem to be the name of the game now for the hard-pressed consumer in the bazaar, somehow keeping the common man’s household budget from going bust.

So while the Rs.52 a kg Indian rajma has made way for a plainer-looking and bland-tasting Rs.37 per kg “Chinese” rajma, the good old white chana has been replaced by “Chinese” chana. Though home-grown, the cheaper variants have been branded “Chinese” because of their bulk availability and low cost, much like so many real cheap goods from the Land of the Dragon.

The long-grained basmati rice selling at Rs.43 per kg onward has been replaced by tukda (broken) basmati rice which costs Rs.25 to 35 a kg. Sunflower oil costing Rs.102 a litre has been substituted by the much cheaper soybean oil at Rs.70 a litre.

The much talked about aam aadmi is also opting for cheaper soaps and detergents and buying low-priced brands that he previously shied away from. “Volumes of purchase took an instant beating with the ascending prices of essential commodities. In the second phase, the common man realised that he could no longer compromise on volumes and started looking for substitutes and cheaper options. That was when we started seeing increased buying of lower quality foodgrains. But what has hit the common man hardest is the increase in the prices of cooking oil,” says Yogesh Khanna of Khanna Stores at Gole Market in the Capital.

“Last Diwali a litre of sunflower oil was selling at Rs.65; it now costs Rs.102. My customers are now buying soybean oil that costs Rs.70 per litre. Another shocker is the cost of soaps and detergents. While a pack of four Lux soaps cost Rs.64 some time ago, it is now selling at Rs.84. One and a half kg of Surf Excel washing powder was selling at Rs.125; now in a matter of a fortnight it has shot up to Rs.140,” he adds. Agrees homemaker Abirami Goel of Minto Road complex who has to manage a family of four including two children: “We have shifted to buying broken basmati rice and lesser quality and quantity of flour. The only fruit that fits into our budget is the banana. As for vegetables, we look for the cheapest available. The obvious compromise is on taste and quantity. Vegetables we won’t buy earlier are now appearing on our menu because they cost less. Substituting and cost-cutting is what is keeping us buoyant.”

Small retailers point out that cost-cutting measures are happening across the food basket. “A 10-kg pack of Shakti Bhog Atta was selling at Rs.110 a month ago. Now it has shot up to Rs.150, so people buy cheaper atta without packing or branding. Why, even big companies are selling less quantity for the same price,” says V. K. Kapoor of Bhagwati Store at Dwarka.