Why are prices of commodities rising in india?

India
December 20, 2010 7:38am CST
It was only a month back when the price rise began on food grains but now its raising for all commodities incessantly.One reason could be shortage.India was known to have the least prices on vegetables and fuel oil but now it has changed. Could it be that the government is trying to get money from people who are not paying taxes?
7 responses
@zandi458 (28102)
• Malaysia
20 Dec 10
Sorry to hear that prices of commodities in your country has gone up. But it is not only in your country. It is global issue as the world economic situation is worsening and it is affecting everyone in this planet. The government of every country is trying their best to fight inflation and they have other ways to penalize those who evade taxes.
@louievill (28851)
• Philippines
20 Dec 10
Just wondering why this is happening , India is so huge with a vast resource, it's so huge and so naturally blessed that in my opinion, India can stand on it's own,and give most country a run for their money, maybe it's just not being managed properly. Just my personal opinion
• India
20 Dec 10
Resources are dwindling.fuel oil is not likely to exist for more than 30 years.India and other nations have to search for efficient renewable resources of energy other than fuel oil and solar
@TeamCholent (2832)
• United States
20 Dec 10
Prices on food and commodities all over the world are on the rise up. It might just be due to a low supply of the products and a large demand(due to flooding or drought etc). Some countries use a slightly higher food price to help curb inflation and spending(not sure if thats always the best option). I doubt government is going to make the whole country suffer but they could have added some tax to the food as well. Hope things get better over there. Have a great day.
@sjlskl (3382)
• Singapore
20 Dec 10
The price is going up everywhere. The difference is that in some places, the increase is too fast while in same, it is gradual. One reason is the freak weather that is causing a shortage of crops. And the other of course is the ever increasing price of crude oil. The former, it is beyond human but we can do something about the latter.
@msdivkar (23359)
• India
20 Dec 10
The main reason for the increase of food material prices is erratic rain. Who had heard of torrential rains in the month of December? It did this year spoiling whole lot of crop of onions tomatoes and host other primary items. I was shocked today to hear that the wholesale rate of onions has shot up to Rs.75/kg. When food material prices increase it has got spiraling effect on all other items starting with labor rates. We have got to do something about much talked about earth warming and its precautionary measures.
• India
20 Dec 10
hii...... Now a days the prices of the commodities are rising day by day in india this is mainly because of shortage of the commodities but this is not only because of shortage but also due to the failure of this government recentle petrol has been increased and they are telling that this will be further increased if this happens then it is very difficult for the people to live as we all know before they used to say that india was known to have least prices on vegetables and fuel oil but now it has been changed we will hope that this situation will be changed and the thing we can do is just waiting for that day............
@nicregi (1934)
• Malaysia
20 Dec 10
Hi there. I don't think government will do that as they have to think of the whole. However if you noticed, korea is at the brink of war and definitely this will affect the world economy. I believe this could be the main reason. Also, countries around the world had increase the food price including malaysia!