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LATEST NEWS UPDATES | Farmers across India react strongly to fuel price hike

Farmers across India react strongly to fuel price hike

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published Published on Jun 26, 2011   modified Modified on Jun 26, 2011
-The Economic Times
 
Reacting strongly to the hike in the prices of diesel , kerosene and LPG, farmers across the country have contended it would have adverse affects on the agriculture sector and even prompt them to end their occupation.

Petroleum Minister S Jaipal Reddy announced of a hike in the price of LPG (liquefied petroleum gas) cylinders by 50 rupees on Friday.

Apart from the price of LPG, the federal government's Empowered Group of Ministers (EGOM) also raised the price of diesel by three rupees and kerosene oil by two rupees per litre.

Farmers in Rohtak region of Haryana said the government is bothered about the losses incurred by the oil companies and ignorant about the farmers' expenses and income.

"Oil companies say they are facing losses, but the farmers are facing more losses than these firms. Without the fuel we are unable to do our work and we get it only once a month. Water from the tube well is not sufficient because the price of fuel has increased so much that the farmers are not able to irrigate their fields with water from the tube well. If we have to store water for once, we need at least 20 litre of diesel" said Rajendra, a farmer from Rohtak.

"Where and how can we manage such needs? It would be better that the farmers' occupation comes to an end. And, if such price hike keeps taking place, then who would do farming? We will have to leave these machinery and get back to manual work elsewhere," he added.

In Kanpur district of the Uttar Pradesh, farmers lamented that the price hike has increased their woes.

"The price hike would have a very bad impact on farmers because diesel has become expensive, the soil is expensive and water problem is increasing day by day. Whatever we produce and the money that we would earn is spent on diesel," a farmer of Uttar Pradesh, Alok said.

Diesel is the most widely used fuel for transport in India and it also powers tractors and irrigation pumps of farmers in India, one of the world's biggest producers and consumers of grains and sugar.

Owners of diesel-run vehicles in the national capital said the hike would lead to an increase in other items such as vegetables and pulses.

"Due to diesel price hike, I have to spend about rupees 1000 to 1500 extra for the car. Plus this would also have an impact on other articles such as vegetables and pulses. Everything will get affected," a car owner in New Delhi said.

Since the government agreed in principle to deregulate fuel costs a year ago, international crude prices have soared by 39 percent, swelling the money spent on subsidising fuel prices.

Petrol prices have gone up by about 23 percent since the deregulation.

With inflation above 9 percent and domestic fuel costs up by nearly 13 percent on the year, raising prices would immediately hit the fractious coalition's core voters among India's poor, who live on less than the cost of two litres of diesel a day.

According to one of India's private banking institution, Yes Bank A three-rupee increase in the price of diesel would add 40-45 basis points to wholesale price inflation.


The Economic Times, 26 June, 2011, http://economictimes.indiatimes.com/news/politics/nation/farmers-across-india-react-strongly-to-fuel-price-hike/articleshow/8989922.cms


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