price rise pains common man

PRICE RISE PAINS COMMON MAN

V. SHANMUGANATHAN


Cost of Food Grains

The prices of Essential Commodities are rising in rocket speed. Every Family’s daily food menu is made of wheat flour, Rice, Pulses, Oil, Tea, Sugar, Salt, Spices and the Vegetables. Data published by RBI, says prices of Potato, Dal, Pulses gone up by 41% as compared to that of last year. Inflation marching to 10% and food inflation reached 20%. The fiscal brains of central Government failed to control prices. It is sad that the poor are being denied the right of having too square meals a day. It is the unorganized, voiceless people of both the Rural and Urban area are hit by the inflation in the hardest manner.

Inspite of bumper Crop

There is a strange and peculiar situation of overflowing stock in FCI and steep rise in prices in retail outlets. India had a bumper crop of Wheat and rice during the period of 2006 and 2009. Wheat production has gone up to 805 lac ton in 2008-09. Rice production rose to 991 lac tons in 2008-09. FCI godowns were over following due to good harvest of Wheat and Rice. Ironically prices got doubled. Data published by RBI says prices of Dal/ pulses gone up by 41% as compared to that of last year.

Sugarcane farmers betrayed

Why does sugar prices came close to hitting a half century (Rs 50/=@ kg) in retail shops? Packed sugar of companies cost Rs 56 or more. This is purely due to Govts. Mismanagement Sugar production boom and bust follows a typical 3 to 5 years cycle. Two or three years of good harvest is followed by a year or two of low yield, primarily due to crop rotation. Wise people budget for a year at poor monsoon. Obviously this wisdom was lost upon the Govt. The year 2006-07 witnessed a record production of sugar to the tune of 282 lakh tones and prices of sugar came down as a result of which sugar cane growers got less price for their produce. When there was record production of Sugar, any foresighted agriculture Minister could think of creating the buffer stock. But, the buffer sock had not been created and export of Sugar was allowed. As a result of which shortage of sugar was created in the country. We were exporting sugar at the rate of Rs 12.50 per kg and importing it at the rate of Rs 35/- per kg. Export subsidy was given on the export of sugar. It has been stated here that this profit was cornered by 33 mill owners. Why Govt. allowed to earn such huge profits by mill owners?

Abundance of grains in FCI godowns but not enough in the Kitchens

There is another serious complacent attitude of the Govt’s reluctancy to take decision. Food Corporation of India warehouses keeps heavy stocks of rice and wheat, several times more than specified buffer norms. Such inventory built up has come at an enormous cost. It leads to a false sense of security about food availability. The Govt. seems to be making a virtue of the large size of public stock of food grains. In reality it is the failure to effectively distribute such grains. Rice and Wheat have no business to sit in Govt. godowns for ever. They ought to be on the kitchens of the consuming public, especially the poor. For every ton of grain stored for a year, the carrying cost is over Rs 2000 a ton. This excessive level of grains in FCI warehouses is a contributory factor for price rise in the market.



Dal stocks rotting in Ports

The prices of pulses approached a ‘century’ (Rs. 100 ) in retail outlets. It is the total carelessness the Govt. of that allowed lakhs of tons of pulses rotting in major ports of India.

Food Inflations :- centre wholly responsible

There is a serious situation. 78% of our population spends almost 60% to 80% of their monthly income on food articles. Then what about housing, clothing, education, medical and other most necessary immediate expenses of people belonging to middle class and other ordinary section of our society.

The public at large wants to know the reasons for the rising prices. How the decision to import and export of sugar and wheat was taken? Why future Trading was allowed? In this whole painful event of price rise, how much money was gained by black marketers and multi national companies.

The Union Government always tried to shirk its responsibility and try to blame the State Governments. It is improper to accuse the State Govts., while all the powers of policy making, Export-Import decisions, PDS control, FCI procurement rests with the centre. The role of the state Government is only to distribute the food grains to the people.

The centre can not wash its hands off its responsibility of containing prices of food grains. Political will is needed to focus its complete attention on where it has gone wrong and what needs to be done to set them right. It the UPA Govt. does not act with responsibility, than Aam Adami will wash off its support to Congress.