Topyaps Logo

Topyaps Logo Topyaps Logo Topyaps Logo Topyaps Logo

Topyaps menu

Responsive image

Raghuram Rajan Explains Why Dosa Prices Are Still High

Published on 15 February, 2016 at 4:24 pm By

The price of a dosa varies across India. While a dosa of similar quality and size might cost less than Rs.20 in some parts of southern states, you might have to shell out upwards of Rs.50 in cities of the north.

The price of dosa has not gone down anywhere despite the fact that inflation in the country has come under control. Why?


Advertisement

This is exactly the question that was put to RBI Governor Raguram Rajan at a Federal Bank event in Kochi, and he accused this: (click on it to reveal)


The tawa! Yes, that flat pan on which the batter is spread over to make a fine, crispy, and delicious dosa, that tawa is the one responsible.

But why?

“Because the preparation of the dosa still follows the traditional way,” says Rajan, “There is nothing new in technology.”

But tawa is not the only culprit here. And the other factor that contributes to the rise in price of dosa is, as Rajan points out, the rise in the wages of the cook.

 



So, rising wages and old technology are the reasons why dosa price is not down yet. Let us explainas simply as possible:

Rajan is not talking about replacing the batter; what he means by technology is a finding way that might help in making more dosas in the same time it now takes to make one without the need for additional labour.

In his book ‘Agricultural Growth, Farm Size, and Rural Poverty Alleviation in India’, Economist C.H. Hanumantha Rao wrote how Punjab increased its rice production through introduction of mechanical methods.

The rice production thus achieved would have required an increase of 6 per cent in labour force if the mechanical methods were not used, which would have cost the Punjab government more in terms of wages, thereby increasing the price of rice.


Advertisement

 

Not only did Punjab increase rice production through mechanical methods, it also utilised less labour for the same.

It is the same with a dosa. And no, a dosa maker is not the solution because there are shops where one cook can make six dosas at a time on a huge tawa.


Advertisement

 

Advertisement

Latest Stories

After ‘Patal Lok’, Anushka Sharma’s ‘Bulbul’ Is Ready To Stream On Netflix On June 24

After ‘Patal Lok’, Anushka Sharma’s ‘Bulbul’ Is Ready To Stream On Netflix On June 24


Martin Guptill Again Called ‘G**du’ To Yuzvendra Chahal, This Is How The Spinner Responds

Martin Guptill Again Called ‘G**du’ To Yuzvendra Chahal, This Is How The Spinner Responds


After Sending Migrants Back To Their Home, Sonu Sood Is Winning Hearts On Twitter With His Hilarious Replies

After Sending Migrants Back To Their Home, Sonu Sood Is Winning Hearts On Twitter With His Hilarious Replies


Want To Know How Many Versions of Ramayan Did Ramanand Sagar Read Before Making The Show?

Want To Know How Many Versions of Ramayan Did Ramanand Sagar Read Before Making The Show?


Yuvraj, Gambhir and Dhawan Lash Out On Shahid Afridi After His Remarks Against PM Modi

Yuvraj, Gambhir and Dhawan Lash Out On Shahid Afridi After His Remarks Against PM Modi


Advertisement

Most Searched

More From Business

Popular on The Web