High inflation rate directly proportional to elections.
These vulturous politians increase the price of everything to fill their party lockers, so that they get the required money to spend on election campaigns. Post elections all the prices will come down, coz politians have to prove that what they said during campaign was not all crap.
I don't think its wise to blame the UPA as this inflation is global now. Its on the rise in almost all countries and even UN has warned against the inflation. The global credit crunch is affecting everyone. But one thing the government failed to do in my opinion is that of adequiate food security options.
I don't know whether CONG gov is responsible for the high inflation. But it is evident they have been trying really hard to pass the buck on the erstwhile NDA government. The congress government has surely been trying to play both liberalization card an aam admi card, albeit unsuccessfully. The aam admi is no economic expert, but he surely knows that during the congress regime his budget went into disarray and that the exchange fell by about 25% in a few weeks. Whether they like it or not or whether it was their fault or not they will have to pay for this in the coming general elections.
The Govt must be sensitive and observant to the indications of what is likely to come and they should then take steps to counter it and reduce the impact on the common man and indeed on the nation itself. It is amply clear that this Govt was not sensitive the situation and they were not pro-active. They just woke up when the inflation levels got alarming and only then did they try some half hearted measures. So, it is justified to blame the present Govt for the impact on inflation on the aam aadmi.
The FM himself admitted in Parliament that there is a slow down in the economy this FY and he intelligently side tracked this by saying that he is confident of maintaining the average growth of the last 3 years. No one asked why average growth of last 3 years and why not the growth of last year itself. This slow down probably was a clear indication of some thing not being in order. Yet the Govt just tried to gloss over this serious issue. They were happy commending the growth of its past years of rule by being totally oblivious of the present.
Lastly, for the common man the Inflation as calculated now by the Govt (based on WPI) is not indicative of the reality. For the aam aadmi, the effect of inflation must be based on the CPI.
The BJP , UPA all political parties failed to implement the population control policies. It is better to blame our self for the rising prices of all commodities. At least the inflation is helping our country to think about before producing many . For vote bank the so called political leaders never raised the dangerous issue and interested to create awareness . Nothing to worry, god may help to reduce the inflation
Impact of high oil prices, which affect agricultural costs directly because of the significance of energy as an input in the cultivation process itself through fertiliser and irrigation costs as well as in transporting food.The high price of oil is hitting consumers' wallets with each trip to the gas station or grocery store. India imports five lakh tonnes of wheat and other food products from other countries. Australia exports 12.2 percent and Canada 13.2 percent of world wheat exports.Now because of the 2 Consecutive droughts in Australia and Canada in place of export they are importing wheat from other countries. Prices of all essential commodities are rising not just in India but across the world due to a fall in supply. Inflation has spiralled all over the world. One of the most lasting cause of higher food prices is certainly population growth. As countries such as China and India grow and prosper, they are consuming a greater share of the world's food. Prosperity affects how much people eat and what they eat.
RE:High oil prices, to be blamed?
by Manoj Kumar on Apr 14, 2008 11:49 AM Permalink
The main problem here is the cultivated lands are not being properly used which resulted in a short supply of food and prices were up. The government are not encouraging the farmers for a self-sustained growth. They will simply eliminate the farmers loans which will benefit the big and educated farmers and not the uneducated poor farmers. The government should allow the farmer to fix the prices for the product and eliminate all middle level players. This will encourage the farmers for doing agriculture. Now, all farmers started to think that they should educate their kids and get them a government job or private IT job as they cannot earn more in farming. The government should have brought a position as such the farmer could earn more than a government and private employee. Long term plan required to implement this. I believe both (NDA or UPA) government will not do this.
RE:High oil prices, to be blamed?
by Hebbar R on Apr 14, 2008 08:14 AM Permalink
This is just trying to deflect opinion. If fuel was the main case, and its price is increasing, why did not the Govt reduces duties and taxes on fuels? These are very high in India. The truth is just that the Govt is not sensitive. They take pleasure in getting higher returns when the international prices increase.
You are right in talking of population. But, pray what is the Govt doing about it?
Without doubt the current govt is just a pack of surrealists. They have no intention of serving the Aam Admi. The Congress party has always played an opportunists role rather than a leading role in the governance of India - an exception being Shri PV Narsimha Rao and Shri Sastriji(very short term and war time PM). I am always amused by the Congresswalas - on one hand they offer magnanimous doles supposedly for the poor and on the other hand let inflationeat up the middle class! The doles are not even distributed properly, therefore the middlemen consume more than what reaches the Aam Admi. The dole outs obviously increase mony supply and therefore inflation! Global prices were rising and this trend has been visible for over 12 years now. Was the Congress blind to it when it formulates a national policy? What steps have been taken to ensure stability of prices? How is it possible to buy Rice/wheat from the farmer at Rs1200/Rs1800 a quintal and sell 80% of the stock at Rs.2/5 a kilo? Is this not creating a parallel economy in the absence of effective checks and balances? Congress is fully responsible for the high levels of corruption in India for its short-sighted policies and vote based sectarian/divisive politics.
Unless all the international news channels are lying, the food crisis is a global issue. In India we are enjoying lower prices than anywhere else in the world. I give a hoot for who is in power .. as long as they take care of India and Indians, that is all I ask for. So in that case, the present government seems to be doing all it can to make the best out of a bad situation.
RE:Global issue
by Hebbar R on Apr 14, 2008 08:18 AM Permalink
Man, it does not matter to the aam aadmi what the international situation is. The aam aadmi is only interested in making end meet for himself. The Govt must be a facilitator for this. After all the Govt is bleeding us all by way of such high taxes and negligible returns.
RE:Global issue
by shiva on Apr 12, 2008 10:06 PM Permalink
Unless all the parties sit around a table to thrash out this problem, I will say all are sheddding only crocodile tears! Other than a blame game, what solutions do they offer? No need, they will be voted to power and this will go on forever!
We have no consensus on any issues. Oil is becoming a political weapon and is slated to go up & up. We are dependent on 70% on Middle East. Whoever is in power, will be helpless.
Unless we hold all our politicians accountable and make them stop playing games, we all will suffer!
NDA started Futures trading but UPA failed to strenghten this market.Thaey failed to give more regulative power for FMC(forward mkt commission).And the abhijitsen committee after completing its one and half year function still now dont have any idea on its actual goal to sudy about essential commodities futures trading and price hike. This is a pure signal that UPA made indian srock market a Foreign investors casino and blaming Commodity futures market started by Sri AB Vajpayee for price hike.CPM is using Ban "online trading" a tool to cheat their votebank in kerala and WB for hiding the actual fact.
RE:CPM is using Ban ''online trading'' a tool to cheat their votebank in kerala and WB for hiding the actual fact.
by Hebbar R on Apr 14, 2008 08:21 AM Permalink
Even if this was true, this UPA Govt, with the so called "Economic" intelligence of the world (with the troika of MMS/PC/Ahluvalia), could have taken steps to prevent this situation. After all they have been in power for over 4 years now.
