Monday, 6 May 2019

Dahinomics

#Randomthoughts OK , so I have often drooled about the Kolkata Rosogolla and has been generally letting a sigh about how   they are priced higher in Mumbai . But today something I noted makes me change the perception to the opposite side.

The price of Dahi (Sour Yoghurt ) in Mumbai is generally Rs 80 per kg at the neighbourhood milkshops. So imagine my surprise when after buying a pau (250 gm) of Dahi ( sour , not mishti) , I had to shell out Rs 50 . On enquiry , the shopkeeper said with a smirk - "200 taka kilo Dada " . That set me thinking , about perspectives , economy , market forces etc.

Though Bengalis are famous for their sweets made from milk , the use of Dahi as a food item is not widespread in them. Of course, they love their 'Mishti Doi' which is actually a form of custard . In other parts of the country , Dahi is a regular food item and people have it everyday with their meals . For me personally, it is a staple breakfast item . 

As I dwelt upon this experience , I wondered on the price differential of Dahi in Mumbai and Kolkata markets and the huge arbitrage for the taking. I don't know why the cost of Dahi should be so high in Kolkata , compared to other places . I can just guess that it follows the simple and basic rule of economics - Demand - Supply equilibrium. Also how this factor changes with geography and cultures. Dahi is not in demand here . So it is produced in lesser quantities and most of the raw material is diverted to other products like Rossogolla , sandesh etc. Low production of Dahi creates more demand for it and jacks up the price. 

Am I right as a budding Nobel laureate ?☺️😊

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