Home Odisha News Odisha declared the sixth costliest state, Balasore, the costliest city

Odisha declared the sixth costliest state, Balasore, the costliest city

Rural Odisha bore the maximum brunt as the inflation rate is higher at 8.95 per cent, reveals the data released by Central Statistical Organisation (CSO) on Monday

Inflation in Odisha looks very hot every year but this time it’s hotter as the state earns the dubious tag of the sixth costliest state in India.

Prices of almost all commodities in the state are becoming harsh for the pocket of the common man.

From the list of those inflated lists of cities Balasore, Bhubaneswar, Rourkela, and Berhampur deserve special mention.

Odisha, the sixth costliest state

People of Odisha feel huffy and puffy over the hike of food items.

The retail prices of Arhar Dal, last year (2019 Nov-2020 Nov) had risen by around 25 percent, mustard oil prices jumping by nearly 39 percent, sunflower oil by 30 percent, and tomato by 25 percent.

Odisha was figured the sixth costliest state in the country for November 2020. The year-on-year inflation rate based on the combined Consumer Price Index (CPI) for November still measured higher at 8.33 percent vis-a-vis the national average of 6.9 percent.

cso-logo
Image: csoonline

Rural Odisha bore the maximum brunt as the inflation rate is higher at 8.95 percent, reveals the data released by Central Statistical Organisation (CSO) on Monday.

In these tough times of the Farm Law issues, the state government readily blames the Centre’s (NDA government) policy of the prices of crops.

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Image: Indiainfoline

Inflation graph of Odisha

Looking at the graph of Odisha inflation, it seems that the price rise story for the State is not a one-off episode. The state has always been doubly vulnerable to high price shock whenever demand-supply mismatch triggered a price rise in the country.

The CRISIL report of 2018 indicates that the State is inclined to hyperinflation rate. This report also says that Odisha had been the third priciest state nationally for Fiscal Years 2013 – 2017.

Timeline and survey:

2009-10: When India witnessed a near double digit inflation, the rate of inflation in Odisha was among the top-5 pricey states in country.

2014-15: When the nation saw the prices of dal (pulses) going through the roof to cross the Rs 150/kg-mark and Odisha stood the third priciest State in the country then.

2019: Odisha was at the top of all the states in the country with an inflation rate of over 9.4 percent.

2020: The state was 3rd priciest state in the country in October with an over double-digit inflation rate of 10.13 percent vis-a-vis the national average of 7.6 percent.

The inflated commodities:

The cereals (rice) and its products which carry a high weight of 18.27 percent in the State CPI and is the second-highest among major states in the country after Jharkhand, didn’t show any perceptible rise (prices are mostly stagnant), pulses, edible oil, and potato have simply stoked the fire in aam admi’s kitchen.

Flour (atta) and sugar prices per kilo have even fallen by Rs 2-3/kg during the last 1-year, reveals the data available with the State Consumer Affairs Department.

Mustard oil is rated as the 3rd highest rate of Rs 150/l in Bhubaneswar after Mumbai and Panaji.

Iodine salt in Odisha comes with a price tag of Rs 20/kg tops the country along with Uttarakhand.

In Potato, the rate now fluctuates around Rs 42-45/kg. Onions are priced around Rs 48-55/kg.

The above rate chart shows the price rise in Odisha is fuelled by the rates of the edible oil and pulses. And an amendment to ESMA has nothing to do with the price rise in Odisha.

The reason of the spike and the solution:

Odisha annually needs around 5-5.5 lakh tonnes of edible oil for consumption. And the demands are met by imports from Rajasthan and Uttar Pradesh.

The prices of mustard oil in Odisha will always remain Rs 5/l more than the price quoted in Rajasthan or Uttar Pradesh, and even Madhya Pradesh.

The transportation cost to Odisha makes the product dearer by around Rs 5/l.

Also read: Centre’s GST Compensation Formula gets Nod from All States

Sudhakar Panda, secretary of Odisha Traders Association said that raising the production of edible oilseeds like groundnut and mustard will be the only solution.

He also said: “Odisha had been country’s 2nd largest groundnut and 4th largest mustard producer three decades ago. But now the state is languishing at 25th place nationally. This tells us why the common man in Odisha is feeling the pinch of price rise more than anywhere in the country.”

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Image: markettime

Panda added that while mustard can be grown in abundance in western and southern Odisha, the Jajpur belt has been the fertile bed for groundnut. The state government made no effort to increase the nitrogen content in the soil, has not accepted proposals from traders’ association over adopting cluster-based farming, he lamented.

Pallavi Mishra
I am Pallavi Mishra. I’m an economics student who’s a poet by heart. A poet who has adequate analytical skills. I am aspiring to work with grooved and prestigious platforms which will polish my skills. I would be glad if my orator skills will help any organization.

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