Kolhapur: The traders in the city believe that a constant change in fuel prices is contributing to an exorbitant rise in the prices of food grains, pulses and vegetables.For the last two months, the dynamic pricing of fuel is being implemented by the petrol pump operators. The fuel prices are modified on a daily basis. The diesel price which is used for transporting vehicles has increased by an average of Rs 6 per litre in the last one year.The fuel prices directly depends on international price of crude oil. During the past two months, days when the prices were slashed marginally are few as against the days when the prices were increased.Kishor Tandale, president of Kolhapur grain merchants' association said, "The transporters have increased their service charges from Rs 20 to Rs 40 per quintal of food grain that they transport. The result is that the prices have increased by at least Rs 5 to Rs 6 per kilogram of food grain procured by the customers."The traders say that the transporters cannot adjust their service charges on a daily basis and therefore they have fixed higher service charges. Earlier, the transporters used to charge Rs 110 for every quintal but now the charges are fixed between Rs 130 and Rs 140, depending on the transportation distance and quantity transporters.The increased cost of transportation is recovered from the final buyers. The food grains and pulses are transported from states like Madhya Pradesh and other states in the northern part of the country in large quantity. Therefore, this directly affects the food grains sold in the city and nearby regions.In case of the vegetables, the dynamic pricing mechanism has contributed to an increase in prices. To some extent, the traders believe that most of the vegetables are supplied from the nearby regions and districts."The prices of vegetables are increasing primarily because the supply has been reduced and the demand is high. The effect of constant change in diesel price on vegetables is less as compared to other factors," said Satish Patil, a vegetable vendor.

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