The class bias in government policy is clear in the decision to release a small amount of foodgrain in the open market to tackle inflation. MOST people would agree that there is a strong element of speculation underlying the current inflation and that forward trading contributes to it. Yet the government, though it has banned forward trading in certain commodities under public pressure, is curiously reluctant to see this point....

Twenty years ago, a Maruti 800, with an air-conditioner fitted, cost a little less than Rs 2 lakh. Today it costs about Rs 2.5 lakh. Twenty years ago, a branded 1.5 tonne window air-conditioner cost about Rs 30,000; today, you can get a split AC unit for that price. Then, Videocon was offering large refrigerators for more than Rs 30,000; you can get better units today for much less. TV...

There is a suggestion circulating in the corridors of our apex monetary regulatory authority, the Reserve Bank of India, that food inflation is beginning to look more ‘structural’ than ‘seasonal’, and it can only be tackled by addressing the supply side. We need to address both demand and supply sides simultaneously to tackle food inflation. While we must be happy that more and more poor eat fruits and cook vegetables...

If dal roti went out of reach for the aam admi in 2009, vegetables and onion prices brought tears towards the end of 2010 and with food inflation touching a high of 14.44 per cent for the week ending December 18, the New Year did not ring in any respite from high food prices. The sudden increase of Rs.3 per litre in the price of petrol in December — the sixth...

After sugar mills in Uttar Pradesh, it’s now the turn of jute mills in West Bengal to reel under shortage of labour. This has forced many jute mills to reduce their production hours and go for production cuts. The 52 working jute mills in West Bengal employ around 400,000 workers and the labour shortfall is about 30 per cent. “The workers are more interested in getting engaged in different government schemes like...