Saturday, February 13, 2010

where did the 25paise go

A couple of days ago, there was news that the price of milk is going up by Rs 2/- or Rs 4/-.
The same morning, I was at a fast food joint (Darshini) to have breakfast. At the counter, I started a casual chat with the cashier on what would be the result of price rise on the price of coffee. He told me that there will definitely be an increase in the price of coffee by atleast Re 1/-.

Hmmm, that made me think. Using my logical brain (hehe), I continued the conversation and put forth this argument. He would atleast make 25-30 glasses of coffee with 1 litre of milk, which means that his overhead is about 10 to 20 paise per glass, but he was going to increase the price by Re 1/- resulting him in an extra profit of 80 paise per glass. The price rise announced by the Karnataka Milk Federation (KMF) is a blessing in disguise for these guys. When I asked him why they couldn't absorb the extra cost of 10-20 paise themselves(as they were already making a huge profit on their sale), he replied, 'why should we'. When I complained that it was not right to raise the price that drastically, he asked he one question, for which I didn't have an answer. He aked me that if he increased the price only by 25 paise, but where the hell would he get the change from? People would only pay him a complete rupee and expect their 75 paise change back.

That gave raise to this blog. Where did the 25 paise and 50 paises go? why did the govt. stop minting these coins? I am not an economist nor a financial guru, and hence I am still looking for answers. Can someone explain to me, how and when does Govt (RBI or whoever) decide to decommission currency denominations?

6 comments:

PRIDERA said...

A valid observation ... it was quite a shock for me to accept that 5 and 10 paise were no longer valued .. now 25 / 50 paise follow the same path .. very sad.

Here even 1 cent is very much valued and is in circulation !

Parisarapremi said...

nanna purse alli ondu 25 ps coin ide!!! :-)

vinay said...

Some time back, i went to Dominos..
The bill was 316.25...
The bugger rounded it to 317 and asked me to pay 317..
So this rounding thing is going on everywhere.. The branded companies are making black money this way..
imagine..
75 Paise from 100(lower estimate) people in one day = 75Rs in one day
amounts to Rs 2250/month black money..

オテモヤン said...
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Anonymous said...
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Nagendra HK said...

Some comments I received for this post on Face book:

GuruKiran Bv
heheheh true dude.. but thats kindaa obvious na. when value of mny keeps increasing no point in having smaller denominations .. Tats y u dnt even find the much smaller denominations than 25 paise which was my dad pocket money in those days.. :D nice topic man

February 13 at 1:41pm ·
Vijay R Gadwal
Vijay R Gadwal
I remember someone telling me that the value of the metal used for the coins has become more than the actual value of the currency! Not sure though...
February 13 at 1:50pm ·