Although retail prices of essential commodities like pulses are 50 per cent higher than the wholesale market, the government says the gap is ‘within limits’.
“The gap between wholesale and retail prices is found to be generally ‘within limits’ with respect to essential commodities,” Minister of State for Agriculture K V Thomas said in a written reply in the Lok Sabha on Tuesday.
The minister attributed higher retail prices to packaging, marketing expenses, transportation and handling costs and to various taxes levied by the states.
As per the price data of 15 essential commodities submitted in Parliament, the retail price of some items in Mumbai, Chennai, Delhi and Kolkata are up to 31 per cent more than the wholesale market.
Traders agree that retail prices are jacked up by more than 50 per cent from the wholesale price.
Thomas said, “The wholesale/retail prices are largely determined by the market forces. There are no guidelines issued in relation to the maximum permissible difference between wholesale and retail prices.”
The price gap is more in commodities like gram, tur, groundnut oil, mustard oil, tea and vanaspati, where the difference is in the range of Rs 10-20 a kg. The price variation in rice, wheat, atta, sugar, onion and potato is up to Rs 6 a kg, the data showed.