Bhubaneswar: Fuel prices in the state have surged for the fourth straight time in the past 10 days, triggering concerns of further possible jumps in cost of vegetables, groceries and other essential commodities.Wholesale traders and market associations said the staggered hike in fuel prices would gradually trigger a ripple effect across the supply chain, but there is no immediate threat of a price rise of essential items, as the state currently holds adequate stocks.Over the past 10 days, petrol and diesel prices have witnessed a steady upward trend, leading to a gradual rise in transportation costs. In fact, per litre of diesel has crossed Rs 100 in Odisha.In the twin cities, diesel sold at Rs 100.60 per litre in Bhubaneswar and Rs 101.07 per litre in Cuttack. On May 15, it was Rs 95.74 in Bhubaneswar and Rs 96.71 in Cuttack, a rise of Rs 4.86 and Rs 4.36 in Bhubaneswar and Cuttack, respectively, within the 10-day period.Traders at Malgodown in Cuttack, one of the state’s largest wholesale trading hubs, and Unit-I Market in Bhubaneswar said transport operators have already started demanding higher freight charges for carrying vegetables, fruits and grocery items from neighbouring states and local production centres.The general secretary of Cuttack Chamber of Commerce, Prafulla Kumar Chhatoi, said Malgodown and Chhatra Bazaar (largest vegetable market in Cuttack) procure almost all grocery products and vegetables from different states, including neighbouring Andhra Pradesh, West Bengal and Chhattisgarh. “Higher fuel prices increase the cost of every kilometre travelled by transporters. Each truck brings 30 to 35 tonnes of goods to Malgodown and Chhatra Bazaar every day on a per-quintal basis. This per-quintal cost is now increasing as and when the fuel cost is rising,” Chhatoi said. The cost impacts the entire supply chain, from suppliers to retailers, and then the consumers.Transporters from Raipur in Chhattisgarh, for example, have raised their charges from Rs 160 to Rs 250 per quintal. “But there is no immediate impact on prices here. Because during peak summer, the demand for oil, dal, atta and spices is low as people reduce consumption of these products. The wedding season is also over. However, the effect will be felt soon as the increase in fuel prices will eventually trickle down to consumers,” he said.President of the Capital Vegetable Traders’ Association in Bhubaneswar, Kabiraj Swain, said the fuel price hike is expected to make vegetables costlier within the next fortnight.As of now, there is no immediate impact on vegetable prices because sufficient stocks are available. “However, once the existing stock gets depleted, we will have to procure vegetables from other states, pushing up the transportation costs and eventually leading to a rise in prices,” Swain said.
