Government’s Callous Approach to Price Rise

The Polit Bureau of the Communist Party of India (Marxist) has issued the following statement:

The big increase in food prices, with the food inflation rate crossing 11 per cent once again underlines the totally callous approach of this Government whose policies are directly responsible for the current situation. Today even vegetables, the cost of which are up by 25 per cent, are a luxury item under the regime of the Congress-led Government. Pulses, oil, sugar, milk are all costlier. Worse, are the bankrupt arguments from official quarters justifying the price rise as being a deseasonal effect, when as is well known, the prices have less to do with seasonal factors than with the increase in fuel prices. The fuel price index is over 14 per cent higher than this time last year as a result of the deregulation and eight-time hike in fuel prices. On the other hand, the Government has refused to ban speculative trade in agricultural commodities, it continues to promote targeting policies which weaken the public distribution system and on the other hand it has utterly failed to ensure that farmers get a good price for their products. Thus under the UPA-2, both the consumer and the producer are suffering. 

 

Having followed policies which are bound to increase prices, the Government now wants to utilize the price increases to bring in FDI and corporates in retail on the false argument that this will lead to an efficient market which will bring down prices.