Signs of Distress: Rich Villages Go Easy on Discretionary Spending

Signs of distress in rural markets are also visible in affluent villages.

Shekhar Singh, a youngster from Mathurapur village in Hathras district of Uttar Pradesh, loves cycling. He bought a Royal Enfield in 2022, a year when his farming family could enjoy their shopping list. However, this year hasn't been good, so his extended family has decided to avoid discretionary spending.

Farmers in Mathurapur, an agricultural village of more than 2,500 with a dominant Jat population, have seen poor kharif yields, forcing them to tighten their wallets. Singh's uncle, Sanjeev Kumar, points out that the average hectare yielded five quintals of rice, compared to 15 quintals last year.

“Our regular household expenses remain the same. We grow some grains and vegetables for our own consumption, but the fuel costs for driving a tractor and fertilizers for the crops are expensive,” says Kumar.

Two-wheelers are a necessity for getting around, while a four-wheeler is a distant dream for now, with rental cars catering to needs such as family trips to nearby towns.

“We were planning to buy a geyser but decided against it as agricultural expenditure is a bigger priority. We can afford to bathe with cold water or in the sun,” says Arun Kumar, an elder in the family, adding that they also avoid charging direct-to-home television packages for a month or two if there is no money is for. Reserve.

Giving another example, Singh points out that while a detergent like Surf Excel costs around Rs 135-140 per kilo, similar locally made and inferior products are available for as little as Rs 100 for 3 kg. Depending on one's budget, villagers, including his family, choose between the branded product or the cheaper alternatives.

Others in the village also complain about mehngai (inflation).

A government school teacher, who did not want to be named, says he earns Rs 85,000 a month but the rise in prices has forced him to make cuts. Because three children study in private schools, he says he won't buy dried fruit or warm clothes as often this year.

First print: December 25, 2023 | 12:09 pm IST