Govt, wholesalers benefitting from falling prices of essential commodities, not consumers: Cong

Close on the heels of fresh inflation data, the Congress alleged on Friday that wholesalers and the government are ”benefitting” from the falling prices of essential commodities, whereas the consumers are not getting any benefit.

Congress spokesperson Gourav Vallabh said the government should not remain a mute spectator and wondered why the prices of commodities and petroleum products are not coming down in the retail market.

”Why suit-boot ki sarkar is just acting as a mere spectator and keeping silent when wholesalers and the government are benefitting from the falling prices of the majority of essential commodities and the final consumers are not getting any benefit?” Vallabh asked at a press conference here.

”When there is a reduction (in prices) in the crude petroleum wholesale market by 27 per cent from May 2022 to May 2023, why even a one paisa benefit is not being given to the consumers of petrol and diesel? ”When the prices of most essential commodities are falling in the wholesale market, why are the benefits not transferred to the final consumers?” he asked.

The Congress leader said when the wholesale price index (WPI) numbers for May 2023 for vegetables, potato and oilseeds were at minus 20.12 per cent, minus 18.71 per cent and minus 15.65 per cent respectively, the consumer price index on food and beverages was 3.29 per cent.

”Farmers are selling their products at lower prices and buying the same products for self-consumption at higher prices. (Prime Minister Narendra) Modiji, is this the method for doubling the farmers’ income?” Vallabh asked.

”This is not the scheme for doubling the farmers’ income. By this method, the farmers’ income is going to be halved,” he said.

The Congress leader also asked why the prices of LPG, petrol and diesel were not reduced in the retail market when, on May 23, the WPI numbers for crude petroleum and LPG had a contraction of 27.01 per cent and 24.35 per cent respectively, and said the government enjoyed all the benefits of this contraction.

Citing official figures, he said India’s wholesale inflation in May 2023 fell to minus 3.48 per cent year-on-year from minus 0.92 per cent in April 2023 and according to the government, this was primarily because of a ”fall in the prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum and natural gas and chemical and chemical products”.

Retail inflation, measured by the consumer price index (CPI), was at 4.25 per cent in May 2023, according to the latest data from the Ministry of Statistics and Programme Implementation.

Inflation data on the WPI is calculated by measuring a change in the overall prices of goods before being sold at retail prices, Vallabh said, adding that in contrast, the CPI measures the changes in the price level of a basket of consumer goods and services bought by final consumers.