Bhubaneswar: Fuel prices in the state have surged for the fourth consecutive time in the past 10 days, raising concerns about potential further increases in the cost of vegetables, groceries, and other essential commodities.
Impact on Supply Chain
Wholesale traders and market associations have stated that the staggered hike in fuel prices will gradually trigger a ripple effect across the supply chain. However, there is no immediate threat of a price rise for essential items, as the state currently holds adequate stocks.
Over the past 10 days, petrol and diesel prices have witnessed a steady upward trend, leading to a gradual rise in transportation costs. In Odisha, the price of diesel per litre has crossed Rs 100.
Price Details in Twin Cities
In the twin cities, diesel was sold at Rs 100.60 per litre in Bhubaneswar and Rs 101.07 per litre in Cuttack. On May 15, the prices were Rs 95.74 in Bhubaneswar and Rs 96.71 in Cuttack, marking a rise of Rs 4.86 and Rs 4.36, respectively, within the 10-day period.
Traders' Observations
Traders at Malgodown in Cuttack, one of the state’s largest wholesale trading hubs, and Unit-I Market in Bhubaneswar have reported that transport operators have already started demanding higher freight charges for carrying vegetables, fruits, and grocery items from neighbouring states and local production centres.
The general secretary of the Cuttack Chamber of Commerce, Prafulla Kumar Chhatoi, stated that Malgodown and Chhatra Bazaar (the largest vegetable market in Cuttack) procure almost all grocery products and vegetables from different states, including neighbouring Andhra Pradesh, West Bengal, and Chhattisgarh. He explained that higher fuel prices increase the cost of every kilometre travelled by transporters. Each truck brings 30 to 35 tonnes of goods to Malgodown and Chhatra Bazaar every day on a per-quintal basis. This per-quintal cost is now increasing as fuel costs rise. The cost impacts the entire supply chain, from suppliers to retailers, and then to consumers.
Transporters from Raipur in Chhattisgarh, for example, have raised their charges from Rs 160 to Rs 250 per quintal. However, there is no immediate impact on prices here because during peak summer, the demand for oil, dal, atta, and spices is low as people reduce consumption of these products. The wedding season is also over. Nevertheless, the effect will be felt soon as the increase in fuel prices will eventually trickle down to consumers.
Vegetable Prices Expected to Rise
The president of the Capital Vegetable Traders’ Association in Bhubaneswar, Kabiraj Swain, said the fuel price hike is expected to make vegetables costlier within the next fortnight. As of now, there is no immediate impact on vegetable prices because sufficient stocks are available. However, once the existing stock gets depleted, we will have to procure vegetables from other states, pushing up transportation costs and eventually leading to a rise in prices.
