Highlights
- Indians living in Melbourne raised alarm about inflated prices of groceries
- Prices of essentials like wheat flour, rice, lentils shot up three times
- Prices have now been corrected by some retailers in Melbourne
Consumers who had to cough up unreasonable prices for everyday items took to social media to “name and shame” businesses that indulged in what they called “exploitative behaviour” in the current time of crisis.
This mass movement on social media led to price correction by several retailers.
Earlier this month, Murali K. Metlapalli, the CEO of Indya Foods, a major importer and wholesaler of Indian groceries in Australia had assured SBS Punjabi of disciplinary action against retailers who charge inflated prices.
Many readers and listeners have shared their invoices wherein they had to pay inflated prices.
SBS Punjabi correspondents also visited many Indian grocery shops across Melbourne to find out if there had been any course correction.
Amongst the earliest price alerts came from the customer of a grocery shop in Melbourne’s eastern suburbs.
On March 15, a 10 kg bag of Pilsbury Gold Atta was sold for $30, whereas the usual price is around $12.
Imported into Australia by solely Indya Foods, Pilsbury Gold, according to Mr Metlapalli, is the "most popular" brand of Indian wheat flour in Australia.
“As soon as I learnt that this shop has charged nearly three times the usual price of a staple item, I instructed my staff to not fulfil his next order. Later, the shop owner pleaded with us, admitted his mistake and promised to correct the price. Then we resumed a restricted supply to his shop. He’s still being watched,” Mr Metlapalli said.
Invoices showing inflated prices at two Indian grocery shops in Melbourne have surfaced on social media. Source: Supplied
However, he reiterates that prices are bound to increase in due course because of the ongoing devaluation of the Australian dollar in the international market.
The Australian dollar has come down to 60 cents against the US dollar, whereas it stood at nearly 70 cents only a fortnight ago.
Indya Foods has now increased wholesale prices between 7-15 per cent.
“On March 15, we had not increased wholesale prices like other wholesalers, so retailers buying from us had no reason to inflate their prices. But going forward, there will be a hike because of the dollar,” added Mr Metlapalli.
Another popular Indian grocery shop in Melbourne’s southeast also was named and shamed on social media by a customer who had been charged nearly $20 for a 10 kg bag of Pilsbury Gold Atta.
Indya Foods told SBS Punjabi that price correction was instructed for this shop too.
Image at representation only. Source: SBS Malayalam
“Retailers can’t sell this brand of wheat flour for more than $18,” Mr Metlapalli said.
However, price correction has not been reported from every suburb in Melbourne.
An SBS Punjabi reader from Werribee said she was charged almost $25 for a 5 kg bag of Daawat Classic Basmati rice. The usual selling price is between $18 and 20.
Another one in the northern suburb of Craigieburn had posted on social media her complaint about a packet of Tata salt being sold for $4, whereas the normal price is $1 or $1.50.
According to Consumer Affairs Victoria, in times of disaster, "price rip-offs" are punishable by law.
In Victoria, the penalty for price rip-off, if established, can go up to $500,000 for a person.
In the case of a body corporate, if found guilty, penalty to the tune of $10 million or three times the value of the benefit obtained from the offence or act of omission, or 10 per cent of the annual turnover of the body corporate can be levied.
Complaints can be made on
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