With tariffs of 50% South Asian businesses work to keep Diwali and their products affordable

"Hari Bhatt, 28, mans the cash register of New India Bazaar on Polk Street, a store that has been in his family for 30 years. The family of regulars across the counter is trying to decide between buying a bag of low glycemic-index Basmati rice for the diabetic dad and rasmalai, a Bengali dessert, for the kids. They can't afford both with the recent price increase on Indian imports. Take the rice and you can still make kheer for the kids, Bhatt tells them."

"In late August, President Donald Trump added a 25 percent penalty on imports from India as punishment for the country's purchase of Russian oil. This was on top of an existing 25 percent tariff that he had already imposed on goods from many South Asian nations, including India. As a result, the once stable prices of staple Indian exports like Basmati rice, paneer, spices, teas, sauces and traditional snacks have jumped significantly,"

"The price of a small pack of Parle-G, a favorite Indian biscuit usually enjoyed with a hot cup of chai, has been 35 cents at New India Bazaar for as long as Bhatt can remember. Now that same packet is 50 cents - a 43 percent jump. With 90 percent of their inventory relying on Indian imports, this could be the story of a lot of their products."

Hari Bhatt mans a family-owned store, New India Bazaar, where regular customers face tougher decisions due to higher prices. A regular family chooses low glycemic-index Basmati rice for a diabetic father instead of rasmalai, with Bhatt suggesting kheer as an alternative. Late-August tariffs added by the U.S. imposed a 25 percent penalty on imports from India on top of an existing 25 percent tariff on many South Asian goods. Prices of staples such as Basmati rice, paneer, spices, teas, sauces and snacks have risen sharply, forcing retailers to absorb costs or raise prices. Parle-G prices jumped from 35 to 50 cents, and 90 percent of the store’s inventory depends on Indian imports. Nonperishables were back-stocked, but festival-specific items remained difficult to secure. Diwali celebrates prosperity and the perpetual win of good over evil.

Read at Mission Local