73% households getting less value for monthly spending on essentials compared to pre-Covid times: Report

A majority of households are spending more money for less value on monthly essentials due to increased prices according to a survey by LocalCircles.

According to the survey, 73 per cent of households report getting less value for the same or more money spent, in comparison to pre Covid-19 times.

“Consumers in March and April 2020 had reported being charged higher prices for essentials like vegetables as well as packaged products where some were charged above MRP due to shortages in the markets due to the lockdown and panic buying,” the report said.

Reasons for increased vegetable prices

Furthermore, heavy rains this monsoon have caused crop damage which is likely to be a contributing factor to the increased vegetable prices.

“Crop damage due to heavy rains and hoarding is also being suspected as a reason for this sudden price rise in vegetables,” the report said.

61 per cent households say they are paying more than ₹60/kg for tomato, ₹30/kg for potato and ₹25/kg for onion, the report said.

Cause for steep rise in prices

“The main cause of this steep prices rise of vegetables is being attributed to excessive rain, labour shortage and also an increase in transportation cost due to the higher diesel prices. This is specially concerning as many have lost jobs and many others are experiencing a cut in earnings and wages,” it said.

“Many citizens are already facing reduced household incomes due to the economic downturn and job losses, and the doubling of vegetable prices of the last few days is pinching their pockets even more,” it added.

The report is based on over 15,000 survey responses from 216 districts of India covering metros to tier 4 districts and rural locations.