Some facts revealing the true situation. 1. Why was import not allowed when the food grain stocks were low. 2. India could have always imported wheat at ruling prices and sold it at Rs 1000 per quintal through its PDS and taking the differnce as subsidy - just in case the prices would have declined from US 500 per ton. DOes it not give subsidy on petroleum products. 3. The railway minister can help chip in by reducing the freight charges for the finised steel from the steel plants and imported steel. 4. The Commerce Minister can help by supporting increase in export duty on Iron Ore on ad valoremm basis (percentage of price of ore as against Rs 300 fixed). 5. The Commerce Minister can further help by reducing the DEPB benfits on Iron Ore as well as on steel. 6. Still the Agriculture Minister can do amends by importing large quanties of food grains. It is well known that the wheat stocks in the world have already depleted from 130 million to only 72 million. The situation is not going to improve considering the situation in south east asian and african countries. 7. It is high time the RBI puts its acts together. It shd allow th Rupee to appreciate - two things will happen. Export will become difficult lading to inflation being exported. It will also allow the import bill of petroleum products to reduce.
Inflation will keep on increasing as long as our govt pegs the rupee at 40 Rs per dollar. This is importing inflation on behalf of USA or simply put subsidising the americans.
RE:Depegging from dollar urgently reqd
by rakesh dikshit on Apr 21, 2008 07:18 PM Permalink
Look it from USA's point of view. Bush has depreciated the greenback and in turn has exported inflation to the economies who are keeping their currencies pegged to a particular level. India (at Rs 40 per USD) and China (At 7.002 per USD) are trying hard to protect their exports. However in its short sigted policy - Indians are paying a highre crude import bill (in rupees) and thereby allowing the public sector to ian increased subsidy for the oil marketing companies.
These people are always looking for patchwork solutions. All over the world in countries with stable working economies, fertile land is almost fully utilised so as demand increases in the world, the price will increase. India is yet to use 40% of fertile land (no forest) Govt lacks the will to bring concrete plans for the development of this land for food sufficiency. It just looks at patchwork solutions like imports and export curbs or dangerous GM food.
since the prices are high in the global market, all the farmers should be allowed to sell their goods in the international market and make more money, 10 times more money than what government gives.All farmers can go toitc e choupals to sell their products to get better products. One can also sell their goods in e bay
Due to the total mismangement of congress, thereo is a food crisis in India. Very soon u can see long qS all all food grain stores. Some people in congrtess wanted that. Since this is a normal scene in communist rule. they dont mind. Whatever is avialable for distribution will be distributed amonng minorities and and other vote banks. You bet guys, this is going to happen within a year.
India is getting worst again, food crises are bigger but nobody cares. Only they care about Industrialization only but don't forget Farmers and their products are the main thing we need more than anything else.
from the article: "Pawar hesitated, but then came out with the real story: if wheat was imported at upwards of $500 per quintal at a time when farmers were being paid Rs 1,000 per quintal of wheat, it could become a political embarrassment."
this smells of a stinky scam all over. 2000 ruppees for a kilo of wheat ? either the article is wrong or there's a big huge scam in the offing. even if there's a shortage in world market, wheat cant be that expensive. did the author mean 500 dollars for a ton (1000 kilos make a ton, 100 kilos make a quintal).
RE:WTF ? 50 dollars for a kilo of imported wheat ? what is it made of ?
by raj on Apr 02, 2008 10:59 AM Permalink
damn, i got my math wrong, but 200 ruppees a kilo is still high!
