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SANGEETHA KANDAVEL & SANJAY VIJAYAKUMAR,ET Bureau Symbol of price control? Tamil Nadu CM Jayalalithaa makes idlis available at Rs 1 apiece ET

 
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Just like the McDonald’s burger can give valuable insights into inflation in the US, the price of an idli is one of the key indicators of where food prices are headed for the average person.
Just like the McDonald’s burger can give valuable insights into inflation in the US, the price of an idli is one of the key indicators of where food prices are headed for the average person.
 
CHENNAI: The idli has dominated the breakfast table of south Indians for centuries, favoured for its simplicity and nutrition. But when Tamil Nadu CM J Jayalalithaa recently set up canteens to sell idlis at Rs 1 apiece, it again brought to the fore the weighty role played by these round steamed cakes in the politics of the state.

Just like the McDonald's burger can give valuable insights into inflation in the US, the price of an idli is one of the key indicators of where food prices are headed for the average person.

This is why governments ruling Tamil Nadu have been particularly sensitive to a rise in the price of a plate of idli and are constantly trying to bring it down. Such interventions began first in 1973, when the then DMK government reduced the price of an idli by a third. In 1981, the state government under MG Ramachandran again tried to bring prices under control. And in 2008, the DMK government asked hotels to reduce the price of idlis, along with a few other dishes. But while cutting the price of idli, many hotels also chopped the size of idlis.

Jayalalithaa, for her part, has taken a more direct approach and is setting up canteens to sell idlis at the rate of Rs 1. In comparison, pushcart vendors in Chennai sell them at about Rs 2.50. Though other items such as curd rice—at Rs 3 per plate-—will also be sold at the canteens started by Jayalalithaa, it is the idli that has once again managed to hog the limelight. "Unlike steamed rice, the idli does not demand many side dishes; just a little chutney will do. That is why the price is very important," said political commentator Gnani Sankaran.

Jayalalithaa's move to set up subsidised canteens in each ward of Chennai is a good one, but the government also needs to address the real issue of food and commodity prices "so that people can cook and eat food at home", he said.

The state plans to launch about 200 canteens in all the wards of Chennai by the end of March. While 39 canteens have been inaugurated so far in the state capital, plans are underway to roll out more. The canteens are being set up in government buildings, with women from self-help groups being employed to make the dishes. In all, 10-15 women are employed at each unit. "During the (previous) DMK regime, hotels were asked to slash prices. This lasted for about six months, and was then forgotten," said N Murugan, a retired IAS officer who writes on social issues. "The scheme launched by the Tamil Nadu chief minister is good. But they have not defined who is eligible to eat there. If the government can control that, it would be good." Murugan said the move to sell cut-rate idlis is part of a pattern where political parties compete with each other to offer freebies to citizens.


Under the AIADMK regime, some of the freebies being distributed include mixers, grinders and laptops for students. According to Siva Subramanian, associate director of India Ratings, Tamil Nadu spentRs 29,726 crore on subsidies and transfers in 2012, about 5.11 per cent of the state's GDP. In 2013, the subsidy bill is estimated to rise to about Rs 36,190 crore. But Tamil Nadu is not the only state to offer food at a subsidised rate.

The Shiv Sena-BJP government in Maharashtra opened food joints offering jhunka bhakar—a Maharashtrian dish—for Rs 1 in the 1990s. E Sarath Babu, 31, chief executive of catering service provider FoodKing and an alumnus of the Indian Institute of Management-Ahmedabad, said the Tamil Nadu government's plan to set up subsidised canteens will hurt the small-time idli vendors more than restaurants.

"In Tamil Nadu, liquor comes cheap. And if food is also available cheap, people will eat, drink and sleep," said Babu, whose mother used to sell idlis on pavements. A vendor near the state-run canteen at Santhome in Chennai said he already feels the pinch. "It has hit my margins," he said, declining to reveal his name.

"Here people have to stand and eat, whereas at the newly launched canteens you don't have to." He said before the nearby canteen was inaugurated, he used to make about Rs 3,000 a day. "For the past week, I have been making around Rs 2,500. As of now, it's not too bad, but I need to wait and see."

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