Friday, June 6, 2014

Goa, the costliest city state (Herald)

Herald Editorial, 6/6/14
The government’s move to implement prepaid cab service and control the exorbitant fares by cab drivers to and from Dabolim airport is a move in the right direction. Taxi and auto fares in Goa are among the highest in the country, since various government failed to enforce compulsory taxi and auto metres. 
Similarly, in many other spheres too there is no cap on prices. As we move towards a free market economy, the once visible Weights and Measures and Price Control department which used to monitor prices, seems to have disappeared with the socialist pattern of society we once espoused. It is not listed on the official government website, nor does it monitor prices.
The immediate fallout of the just implemented fishing ban, will be tremendous escalation in fish prices. Even otherwise there is no visible rationality in fish pricing in Goa compared to for instance, Mumbai, where prices are lower. The government has to step in and regulate fish prices, by putting a reasonable price tag on it considering the input costs. Free enterprise is welcome, as long as it does not rip off the consumers.
Goa is one of the comparatively costlier states in almost every commodity, especially pricing of food and eatables. Bread priced at Rs 3, is sold at Rs 10 in all major tea shops and city restaurants without adding value to it. Before this hike, bread was sold at Rs 5 at restaurants. A 100 percent hike has been effected without any qualm. The hiked price is three times more that the baker’s price. Likewise, tea is priced at Rs 15 in these restaurants, up from Rs 10, which is a 50 per cent jump. Vegetables, fruits and most eatables are priced high, before the government started bringing in vegetables from wholesalers from neighbouring states. The initiative should not be to subsidise prices at the cost of public exchequer, but get vendors to control prices. 
Unlike in Mumbai where the huge sea of humanity survives on small affordable road side joints and eateries, in Goa there are negligible eating joints of this type except those near Cine Alankar, Mapusa or those at a couple of locations in Panjim. Food courts should be created to house such joints which offer snacks or mini meals at affordable prices in towns and cities where strict hygiene standards and good waste disposal system should be enforced. 
While in Mumbai one can get a decent glass of mango juice for Rs 15, in Goa at smaller joints it is around Rs 30 and in restaurants, close to Rs 70 which is exhorbitant.
Though throughout the world, government is a bad entrepreneur, one of its endeavours should be to encourage local entrepreneurs in all spheres, to work to economies of scale, lower margins and profit on turnover. The classic example of pricing can be learnt from a petty Mumbai onion vendor. Everyone wondered how he sold onions at the same price he bought them from wholesalers. Even his fellow competitors were perplexed at his pricing. Since the onions he sold were the cheapest, buyers would flock to him due to which he sold approximately 1000 sacks of onions. He made no money on the sale of onions, but earned nearly Rs 1000 a day from the sacks he sold, while his fellow onion vendors made much less.
In Goa the common tendency among many taxi operators, some tourism stakeholders and traders is to metaphorically kill the goose that lays golden eggs, by keeping huge margins. Unfortunately for food items and some other essential services, people will have to depend on vendors. 
In the light of this situation, it should be the endeavour of the State government to bring in a policy to control prices though rewards for reasonable pricing and disincentives for ripping off customers and thus lighten the burden on the middle class Goan which is reeling under inflation.
 http://www.oheraldo.in/newscategory/Edit/15

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