Click to play videoNew Delhi: Onions may not have disappeared from your table yet. But if double digit inflation continues, they just might.
For Rohit Sharma, a senior production manager at the Indian restaurant chain Nirula's, keeping prices constant has been a challenge. With food inflation over 13 per cent for most of the year and cost of vegetables and fruits soaring, he's forced to innovate.
Rohit Sharma, Senior Vice President, Production and Supply Chain, Nirula's said, "We are innovating in terms of say in salad less onion, put more tomatoes or cucumber. We have to innovate but not recipe changes. That is how we are coping up."
Small and medium enterprises are worst hit by the price rise. Digvijay Singh Chauhan, who exports agriculture automotive components from his Noida factory, has seen a 10-15 per cent rise in steel prices in one year.
Labour and transportation costs have doubled. With customers unwilling to pay more, Chauhan has little choice.
Digvijay Singh Chauhan, CEO, Unispares said, "Margins are reduced for the manufacturer. We try to convince our buyers to raise price but that does not happen. We are hoping for some sort of price control and better situation.
SMEs contribute to almost half of industrial output, 40 per cent of exports and employ 6 crore people. With input cost going up by over 10 per cent and money becoming dearer, they are being choked from both sides.
As budget nears, SMEs are hoping for helping hand from the Finance Minister.
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