Price decontrol move fuels food inflation in Kashmir

Srinagar, Mar 14:  Kashmir is grappling with an unprecedented increase in food prices as the government's decision to decontrol rates of essential commodities has left consumers at the mercy of vendors and dealers.

The steep price escalation across almost all eatables, including vegetables, fruits, mutton, chicken, and eggs, has severely impacted household budgets, leaving many struggling to make ends meet.

Until mid-2023, the Food, Civil Supplies and Consumer Affairs (FCS&CA) Department held the authority to fix prices of these essential items and issue a mandatory price list to regulate the market.

Violating the government-mandated rates would invite strict action against errant traders and vendors.

However, the government’s recent move to end this price control has created an unregulated environment devoid of regulatory oversight.

In the absence of a monitoring body, vendors and traders have been left with unbridled freedom to dictate prices as per their whims and market dynamics.

This unchecked price determination has led to a steep surge in rates, pinching the pockets of ordinary Kashmiris who have seen their grocery bills skyrocket in recent months.

The J&K government has been stripped of its ability to regulate rates of essential items after the Ministry of Consumer Affairs informed that the 1990 notification allowing such price controls “was no longer valid and applicable”.

This development came after the J&K Agriculture Department sought clarification from the Centre regarding the validity of the three-decade-old notification S O 145(E) which had delegated powers to the erstwhile state to fix the prices.

“FCS&CA no longer has the power and mandate to fix prices of essential commodities, the prices have been decontrolled,” Director FCS&CA Kashmir, Abdul Rashid War said.

With prices now decontrolled, dealers and retailers are free to set their rates on essentials like mutton, chicken, food grains, pulses, oils, and vegetables.

Officials worry this could lead to hoarding and profiteering, especially when the lone road link to Kashmir faces frequent blockades.

“Price fixation used to act as a deterrent for dealers and retailers,” a senior FCS&CA official said. “Kashmir's geographical vulnerabilities made the price controls unique and necessary.”

Consumers are already feeling the pinch, with wild variations in rates being reported.

“Tomatoes are selling at Rs 70 per kg at one place and Rs 50 at another. There is no accountability,” rued Javid Ahmad, a resident of Srinagar’s Soura locality.