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न्यूज क्लिपिंग्स् | Price rise needs check by Jayanthi Natarajan

Price rise needs check by Jayanthi Natarajan

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published Published on Dec 8, 2009   modified Modified on Dec 8, 2009

Recently there has been considerable media discussion about the issue of rise in prices of essential commodities and the problem of food inflation. In a country like India, where the cost of food forms major part of the monthly or daily expenditure incurred by an average family, this is a debate which acquires poignant significance. This is a government that came into power based on a concern for and commitment to the welfare of the common man and this is a government which is constantly tuned to the need to make our democracy more inclusive and transparent.

It is no secret that there has been a severe global economic crisis over the last several months and it is a matter of quiet satisfaction that our economic, financial, banking and regulatory policies have been so strong and firmly grounded that our economy remained insulated from the worst effects of that crisis.

Further, despite the world economic crisis, the country managed to record 6.7 per cent growth in 2008-2009 and the projections for the latest quarter show even more encouraging signs of 7.9 per cent growth, something that even the greatest optimists did not expect.

The core sector of the economy has sent clear signals of recovery and growth in the infrastructure doubled to 4.3 per cent this year. Even electricity generation jumped to six per cent in April, as against 1.4 per cent for the same month last year.

Production of cement, steel, coal, has all gone up. There has been phenomenal growth in the services sector, and transport and communications. All of this shows that the installation of a stable government at the Centre, under the leadership of Prime Minister Manmohan Singh, has led to clear and productive economic policies which have insulated the nation against the financial storms that have devastated many economies in the world.

However, two crucial sectors, namely agriculture and the manufacturing sector, have not performed as well as expected. Agriculture, particularly, has been hit by a series of crises and while 27 out of 36 meteorological districts in our country experienced moderate to severe drought, and states like Karnataka and Tamil Nadu reeled under the onslaught of terrible floods, which destroyed everything in their path, wreaking great damage on food production, and livestock apart from loss of lives and livelihood.

As a result of these natural disasters and also as a result of world recession and various other factors, the anomaly of higher than expected growth in the gross domestic product (GDP) accompanied by rise in food inflation has begun to confront policymakers. While we may be justifiably proud of our GDP growth, there can be no question that the government has to urgently address the question of rising prices.

Clearly, the priority of the government, and should be to moderate inflation, to ensure inclusive growth, to give substantial impetus to agriculture and, above all, to insulate the weakest and most disadvantaged sections of society from the travails of rising prices.

In this context, the attempts made by some Opposition parties to create an atmosphere of fear and panic is thoroughly reprehensible. The media too cannot be absolved of a kind of breathless sensationalism in projecting a picture of gloom and doom and flashing doomsday scenarios on the food front. These are approaches that are not just contrary to the facts on the ground but also are liable to be condemned for being an irresponsible attempt to trigger alarm and panic in society by politicising the food situation.

The facts need to be considered in perspective. Despite all the problems mentioned above, there is not even the remote possibility of food shortage in our country.

We continue to have buffer stocks of 153.49 lakh tonnes of rice, as against the prescribed norm of 52 lakh tonnes, while our wheat buffer stock stands at 284.57 lakh tonnes as against a norm of 110 lakh tonnes. Therefore, the question of shortage does not arise. Again despite all the problems of drought and flood, our procurement has been the highest ever, with 33.1 million tonnes of rice being procured, as also 22.57 million tonnes of wheat.

The social security net of 35 kg of rice at Rs 3 per kg and wheat at Rs 2 per kg under the Antyodaya scheme of the Central government is going strong and as observed by the finance minister Pranab Mukherjee the issue price of rice, wheat, sugar kerosene and edible oil have not increased, ever since the UPA government came to power in 2004.

The government has taken pains to dramatically increase the minimum support price (MSP) of rice by 79 per cent from Rs 560 to Rs 1,000. The MSP of wheat has been increased by 72 per cent from Rs 640 to Rs 1,100. Farmers have received other support from the United Progressive Alliance government by means of a massive loan waiver and the government is constantly looking at ways in which the agriculture sector can be supported. On the administrative side, future trading in the four vital items namely rice urad dal, tur dal and sugar etc have been suspended and export of non-basmati rice, edible oil and pulses has been banned.

Thus, the Central government has taken all possible steps to curb the rising prices of food and has left no stone unturned to fulfil its responsibility. However, the spirit of cooperative federalism demands that the state governments must do their bit as well. The all-important strengthening of the Public Distribution System (PDS) has to be monitored by the state governments. Statistics show that many states do no take serious action against blackmarketers and hoarders. Also even in the few cases where raids are launched, prosecution rarely follows. This is nothing less than dereliction of their duties on the part of the state governments. If price rise is to be curbed the most basic issue to be addressed is the implementation of the Essential Commodities Act, prevention of black marketing and hoarding and proper implementation of the PDS.

The states have to swing into mission mode and carry out their role effectively if the people are to have sustainable relief from the vagaries of price rise. Concerted action has also to be taken by all concerned to bridge the unacceptable dichotomy between the wholesale and retail prices with stern deterrent action being taken against profiteering middlemen.

Price rise is a national issue and can only be controlled if everyone comes on board and swings into decisive action.

Jayanthi Natarajan is a Congress MP in the Rajya Sabha and AICC spokesperson. The views expressed in this

 

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