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Why Prices are increasing?
by sidhick aboobacker on Apr 01, 2008 09:22 AM   Permalink

The policy making body is not actually aware about the reason behind commodity price increase.
A manufacture procure raw material and spend many expenses on it to make a consumer product. He could not market it without any profit. In India every where competition and in this competative market if the prices are going up it is no doubt the reason is only govt policy.

Here govt help industry and consumers by way of possible incentives. For example a paultry unit require feed at cheap rate. Maize farmer require good rate for his crop as the expense incured by him to cultivate the crop is huge as in fertilize, labor and other expenses. So govt. look all these factors and should help farmer by fertilize subsidy, paultry farmer by power subsidy and tansporting cost subsidy and each and every small scale industry to make competition among them for quality goods at cheap rates in the market.

Petrolium price increase lead transportation cost, in-advocate supply of power lead high cost labor and all these factor lead price increase in the market. Without rectifiying all these we could not stop the price increase.
Imposing restrictions are foolishness and lead only for corruption.

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Govt unveils measures to fight inflation