So don't blame the neighbourhood Subziwala
The PM is an economist. He knows that when more money chases the same amount of goods, prices will rise
Mohan Guruswamy Delhi
The price rise of all food items seems to have nonplussed our political and bureaucratic leadership, as usual. They are also as usual flailing about threatening to crack down on 'hoarders' and to institute tight price controls. As always, this will amount to nothing because the State not only does not have any sinews but also teeth to back its intentions. Besides, the only commodities on which the State can exercise even a modicum of control are cereals, sugar and cooking oil. That is, because these are the only food items that are hoardable and it can somewhat regulate prices with policy sticks like restricting movements, imports and by additional PDS releases. Good luck to them.
But the real price increases have been in items which are not hoardable and where only the most basic law of economics prevails. It's a world where only supply and demand determine prices. You cannot, after all, hoard ladyfinger or brinjal nor import them in any significant quantity to make any difference. The price increases for vegetables and certain pulses have been astronomical, well over 100 per cent in many cases.

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