Friday, June 23, 2006

Food price hike in India

BJP onions, Congress tomatoes and public soup!

So after the BJP's "onion" exploits we now have the Congress "exploiting" the public.

From its heyday slogan of "Garibi Hatao" its gone to "Garibo ko Hatao". With even middle class consumers now unable to adjust their budgets to the new "trend" in increase of prices for vegetables and pulses.

In a matter of weeks the cost of these essential food items have gone up alarmingly. Moong dal and tomatoes have now become luxury items.

Various reasons have been blamed for this situation, chief among them being "shortfall in production".

Also the tomatoe produce has been struck down by the leaf cull disease leading to lower output.

Hike in transportation costs because of increasing fuel prices have meant supply has been lower than usual.

And as if all this was not enough hoarding of food items by shopkeepers and baniyas leading to price speculation means the rates had to climb rather alarmingly.

With food comodity prices rising higher than the rate at which our highrises come up, the government has finally woken up and allowed import of wheat, sugar and various pulses. Also an immediate ban on
export of pulses has come into effect.

Inflation rate has climbed high enough and now the government has reacted. Waiting for the prices to plateau on their own, the Congress led government stood by for weeks as a silent spectator.

Now only if the government would come down heavily on traders who are hoarding items.

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