India inch to seven percent inflation
India with foreign investment pouring the government getting best of revenue has increased the pay package in span of ten years that inflation was imminent.India stands at cross road of development but with national character at low ebb will India survive.The policy maker have the immense responsibility to take the nation to developed state with industrialist and business men compete ting the global market.
India inches towards seven percent inflation as reports by government run media PTI.With price rise of essential items,energy,food,transport,metals,minerals are skyrocketed with government trying to put curbs to slash the inflation which has its cue from the global economy and lack of management of Indian economy.Each day growing inflation, burden raw materials cost,energy cost escalating export orders at low ebb with low consumer demand and more free markets puts Indian economy falter.
Retail prices essential items have increased by up to 11 per cent in the national capital in last one month, felling the inflation rate to rise to 39-month high of seven per cent.
The prices of gram (chana) rose by 2.7 per cent to Rs 38 per kg on April 1 as against Rs 37 a month earlier, according to the data provided by the Department of Consumer Affairs.
Sugar prices increased by nearly 6 per cent at Rs 18 per kg, mustard oil by 2.6 per cent to Rs 77 per kg, Vegetable oil by 10.14 per cent at Rs 76 per kg and onion by 11.11 per cent at Rs 10 per kg.
The wholesale price-based inflation rose to seven per cent in the week ended March 22 from 6.68 per cent in the previous week as prices of vegetables, cereals and various manufactured goods continued to rise.The government has announced plethora of measures to rein in the rising inflation, including scrapping of customs duties on all crude edible oils, reduction of duties on refined edible oils, ban on exports of non-basmati rice and increase in export price of basmati rice.
Asian countries will soon have free trade as per the policy of the Asian countries and as the free trade increase the economical pace of the developing countries will also enhance and the best managed nation with touch of wisdom both in social and political to gain fast.
India faces tough challenge from present economical scenario as the surging inflation just after the Federal budget with global inflation has made the UPA government take speedy measure.Cabinet committee of price met Monday Night and took measure to control. But political parties with their interest intact has the state government run by Opposition and even the UPA allied partners left running more than three states are cornering the UPA government in the Center.Each party to take the issue to the streets rather than to work for the welfare of common man.
With Spiraling inflation, the government force to review the situation arising out of surging prices on Monday, particularly of some food and metal and Cabinet committee on Prices will meet today to take stock of situation. But in rare contrast the opposition parties and coalition partners instead of sitting down and work on strategies for the common interest of common man go marches on streets to get sympathy of the people as ensuing Parliamentary elections.
The governments across the globe are in line to take measures to keep prices of staple foods under control.Worried about its wheat supplies, India decided to boost its rice stockpile to about 10 million tonnes and stop exports, a wise move in a country of 1.1 billion people but bad news for the rice price stability in other Asian importing rice.
The rice prices on the international market have jumped almost 50 percent, prices are rising each day basis and causing unprecedented volatility in the Asian countries where rice is staple food as India restricted its imports.Asian countries going for free trade in near future is likely to create new order in staple and pulse and cereals across Asians markets and its global impacts. Asian countries Vietnam, China and African countries Egypt are restricting rice exports, and South Korea will release grain from state-controlled reserves to better prices. Food prices all over the world are going through the roof and so spread the risk of social unrest,"" investor Jim Rogers said in Singapore.
Price rise is attributed to poor performance of PDS system to which center and state government is equally responsible. Both center and states are selling their irrigated and fertile land in the name of economic development of SEZ and farmers agitation in this regards is overlooked and suppressed.Another factor which brings the rise in price is the rise in price of essential services and food commodities.Public transport system of both the states and center is in shambles and their cost is increasing each years due their poor upkeep and mismanagement.Electricity supply which is state subject has been given to private sector and it is bound to hike its price thus the production and common men will always get burden with private entrepreneurs making profits at cost of common man.
Essential commodities which is control by various agencies like FCI,Agriculture boards etc but the government both in center and state lack proper coordination.Public distribution system a government run organization with no efficiency makes the situation of essential commodities reach common man a impossible task. Rise in prise has come out to be a potent issue for ensuing General election in the country.Both BJP and CPM wants to encash this issue in their party’s interest.BJP has convened CM convention of the BJP rule states and has advised them to hold demonstration in their states against spiraling price rise. CPM party session in Coimbatore passed a resolution asking the government to to check inflation or face agitation any time after April 15. Politburo member Sitaram Yechury said the party’s resolution would be communicated to the government and it would have time till April 15.CPI has also announced an aggressive agitation from April 18, the two Left parties may join hands in holding demonstration and agitation to gain voters confidence.
The idea is not only to make the government deliver but also to not let BJP take the lead in opposing all-time high prices of essential commodities and food grain. CPM further demand includes strengthening of the PDS by universalizing it, restoration of food grain allocation to states under PDS and inclusion of 15 essential commodities among them pulses, edible oil and sugar in the PDS list.
Public distribution system AICC General Secretary Digvijay Singh wondered over the rise in prices after the Union Budget 2008-09 when it had not levied any taxes or duties on essential commodities."There is no shortage of wheat, pulses, edible oil, sugar. Why are the prices then going up suddenly? It has to be because of hoarding and because the state governments have not enforced stock restrictions," Singh said.
He said the state governments should immediately take up anti-hoarding drive to bring the prices under control.Replying to questions, Singh also admitted that the implementation of the recommendations of the Sixth Pay Commission would further add to the inflation.
A day after the Cabinet Committee on Prices announced measures to control inflation that is at a 13-month high, the Food Ministry decided to dismantle two million tons of sugar from the buffer stock starting next month.
The buffer stock was created for a year from May 2007 to April 2008.It also decided to increase procurement of wheat, demand for which has risen due to changing dietary habits in people in traditionally rice consuming states.‘We are going to take precautions-We have to procure maximum (quantity of wheat)," Agriculture and Food Minister Sharad Pawar told reporters in the Capital on Tuesday.The government has to take care of the Public Distribution System, he said and added that changing food habits in the country was fueling demand for wheat.The government was able to procure only 11 million tons of wheat last year as against the target of 15 million tons, forcing it to import 1.8 million tons to boost buffer stock.
On sugar, an official statement said mills are allowed to sell the quantity held in buffer in respect of buffer stock of 2 million tons in the domestic market at any point of time in 2007-08 sugar season from 1st May, 2008 onwards.
Earlier on Monday, futures trading in soybean, soy oil and mustard seeds was suspended temporarily in agri-commodity exchange NCDEX after prices fell sharply on Tuesday, following the government"s decision to cut import duties on all edible oils. In spite of the increase in world cereal production in 2007, a tight global cereal supply and demand situation prevails in the current 2007/08 marketing season. Cereal supplies are low mainly because of dwindling stock levels carried over from the previous season. With world demand showing little sign of abating, international prices of most cereals remain high, and some are still on the increase, while world reserves are heading for yet another decline from their already low levels.
The rice prices on the international market have jumped almost 50 percent, prices are rising each day basis and causing unprecedented volatility in the Asian countries where rice is staple food as India restricted its imports.Asian countries going for free trade in near future is likely to create new order in staple and pulse and cereals across Asians markets and its global impacts. Asian countries Vietnam, China and African countries Egypt are restricting rice exports, and South Korea will release grain from state-controlled reserves to better prices. Food prices all over the world are going through the roof and so spread the risk of social unrest,"" investor Jim Rogers said in Singapore. Food and Agriculture Organization said in February that 36 nations including China face food emergencies this year.
Coarse grain production declined significantly in a few countries along the Gulf of Guinea, notably in northern Nigeria and Ghana, leading to a tight food supply situation at regional level with reports of rising food prices in Benin, Burkina Faso, Ghana, Niger, Nigeria and Togo.
Regarding the state of China, since 10 January, 14 provinces in the southern and eastern parts of the country have been affected by the most disastrous ice rain, snow and freezing weather since 1951 in terms of geographical extension, intensity and related damage. As of the end of January, about 90 million people were reported to be directly affected and millions of hectares of crops, especially vegetables and oil crops are reported to be severely damaged
In spite of the increase in world cereal production in 2007, a tight global cereal supply and demand situation prevails in the current 2007/08 marketing season. Cereal supplies are low mainly because of dwindling stock levels carried over from the previous season. With world demand showing little sign of abating, international prices of most cereals remain high, and some are still on the increase, while world reserves are heading for yet another decline from their already low levels. International trade of cereals is expected to peak in 2007/08, driven mainly by a sharp rise in demand for coarse grains. Although a significant expansion in winter wheat plantings in the northern hemisphere is likely to result in much higher wheat production in 2008, assuming normal weather conditions, the current situation is such that it may require significant increases in production of more than one season’s cereal crop for markets to regain their stability and for prices to decline significantly below the recent highs.FAO reports
The Union Government also advised states to impose limits on stocks of commodities under the Essential Commodities Act, besides asking steel producers not to raise prices.
Asked whether these measures would help in containing inflation, which has touched 6.68 per cent for the week ended 15th March, Chidambaram said: “I sincerely hope so.".
All edible oils in crude form can now be imported at zero duty as against 20 per cent now (barring soya), while the duty on oils in the refined form and vanaspati would be 7.5 per cent compared to 27.5 per cent and 20 per cent respectively.
The government also decided to raise the Minimum Export Price of Basmati rice to USD 1,200 per ton from USD 1100, to discourage export and increase availability in the domestic market.It also cut import duty on butter and clarified butter (ghee) from 40 per cent to 30 per cent.Besides, the 15 per cent import duty on maize was abolished, applicable on import of up to five lakh tons.
The Steel secretary Mr R S Pandey told press that “We talked about the situation of pricing and availability of steel and for long products like TMT bars, the price of which has gone up more sharply than other products in the past two months," further said, “There the major producers have agreed that some of their prices are at slightly higher levels, (and) would consider some rollback," he added. “Companies such as Tata Steel and RINL would provide a relief of about Rs 2,000 per tonne on long products."Indian government is persuading the industrialist to lower prices of their commodities to contain the soaring of inflation which has is pinching the common man and political parties raising hue and cry.
The World Bank making an efforts to fight global food and energy crisis and its President Robert B. Zoellick called for a “new deal" to combat world hunger and malnutrition through a combination of emergency aid and long-term efforts to boost agricultural productivity in developing countries.The World Bank estimates 33 countries face social unrest because of soaring food and energy prices
Zoellick said the time was “now or never" to break the impasse in global trade talks. A “fairer and more open trading system" would encourage developing country farmers to expand production, he said.
The World Bank will nearly double agricultural assistance to US$800 million in Africa. Zoellick also urged wealthy nations to help the UN’s World Food Program meet some $500 million in emergency food needs.
“The United States, the European Union, Japan and other OECD countries must act now to fill this gap – or many more people will suffer and starve," Zoellick said in an address sponsored by the Center for Global Development in Washington.
“The poor need lower food prices now. But the world’s agricultural trading system is stuck in the past. If ever there was a time to cut distorting agricultural subsidies and open markets for food imports, it must be now."
An accord would give developing countries, big and small, more opportunities to become more productive and lower prices through trade. It would also infuse confidence in an economic system stressed by financial anxiety, he said.
However, “powerful voices across the political spectrum, including in my own country, are calling for, rationalizing, protectionism," Zoellick said. “This economic isolationism signals a defeatism that will reap the losses, not the gains, of globalization."
The trade talks are also a “critical test" for striking a global deal on climate change. “If negotiators of 150 economies cannot manage the political trade offs of the Doha Round to reap the clear benefits, it does not auger well for bringing developed and developing countries together on a new accord for climate change."
Zoellick also outlined a plan to encourage emerging economies such as China, India and Brazil to invest about US$30 billion in African nations through government-sponsored wealth funds.
Expanding existing social assistance programs that directly targets poor households is necessary to protect South Asia’s poor in the face of a dramatic increase in global food prices, a World Bank South Asia expert said today.
This entry was posted on Friday, April 4th, 2008 at 8:05 am and is filed under Blogging, Dreams, Shopping, Food, Friends, Games, Goals, Plans, Hopes-Jobs, Work, Careers-Life, News, Parties, Philosophy, Romance-Relationships, Travel, Politics, Contests.
India inches towards seven percent inflation as reports by government run media PTI.With price rise of essential items,energy,food,transport,metals,minerals are skyrocketed with government trying to put curbs to slash the inflation which has its cue from the global economy and lack of management of Indian economy.Each day growing inflation, burden raw materials cost,energy cost escalating export orders at low ebb with low consumer demand and more free markets puts Indian economy falter.
Retail prices essential items have increased by up to 11 per cent in the national capital in last one month, felling the inflation rate to rise to 39-month high of seven per cent.
The prices of gram (chana) rose by 2.7 per cent to Rs 38 per kg on April 1 as against Rs 37 a month earlier, according to the data provided by the Department of Consumer Affairs.
Sugar prices increased by nearly 6 per cent at Rs 18 per kg, mustard oil by 2.6 per cent to Rs 77 per kg, Vegetable oil by 10.14 per cent at Rs 76 per kg and onion by 11.11 per cent at Rs 10 per kg.
The wholesale price-based inflation rose to seven per cent in the week ended March 22 from 6.68 per cent in the previous week as prices of vegetables, cereals and various manufactured goods continued to rise.The government has announced plethora of measures to rein in the rising inflation, including scrapping of customs duties on all crude edible oils, reduction of duties on refined edible oils, ban on exports of non-basmati rice and increase in export price of basmati rice.
Asian countries will soon have free trade as per the policy of the Asian countries and as the free trade increase the economical pace of the developing countries will also enhance and the best managed nation with touch of wisdom both in social and political to gain fast.
India faces tough challenge from present economical scenario as the surging inflation just after the Federal budget with global inflation has made the UPA government take speedy measure.Cabinet committee of price met Monday Night and took measure to control. But political parties with their interest intact has the state government run by Opposition and even the UPA allied partners left running more than three states are cornering the UPA government in the Center.Each party to take the issue to the streets rather than to work for the welfare of common man.
With Spiraling inflation, the government force to review the situation arising out of surging prices on Monday, particularly of some food and metal and Cabinet committee on Prices will meet today to take stock of situation. But in rare contrast the opposition parties and coalition partners instead of sitting down and work on strategies for the common interest of common man go marches on streets to get sympathy of the people as ensuing Parliamentary elections.
The governments across the globe are in line to take measures to keep prices of staple foods under control.Worried about its wheat supplies, India decided to boost its rice stockpile to about 10 million tonnes and stop exports, a wise move in a country of 1.1 billion people but bad news for the rice price stability in other Asian importing rice.
The rice prices on the international market have jumped almost 50 percent, prices are rising each day basis and causing unprecedented volatility in the Asian countries where rice is staple food as India restricted its imports.Asian countries going for free trade in near future is likely to create new order in staple and pulse and cereals across Asians markets and its global impacts. Asian countries Vietnam, China and African countries Egypt are restricting rice exports, and South Korea will release grain from state-controlled reserves to better prices. Food prices all over the world are going through the roof and so spread the risk of social unrest,"" investor Jim Rogers said in Singapore.
Price rise is attributed to poor performance of PDS system to which center and state government is equally responsible. Both center and states are selling their irrigated and fertile land in the name of economic development of SEZ and farmers agitation in this regards is overlooked and suppressed.Another factor which brings the rise in price is the rise in price of essential services and food commodities.Public transport system of both the states and center is in shambles and their cost is increasing each years due their poor upkeep and mismanagement.Electricity supply which is state subject has been given to private sector and it is bound to hike its price thus the production and common men will always get burden with private entrepreneurs making profits at cost of common man.
Essential commodities which is control by various agencies like FCI,Agriculture boards etc but the government both in center and state lack proper coordination.Public distribution system a government run organization with no efficiency makes the situation of essential commodities reach common man a impossible task. Rise in prise has come out to be a potent issue for ensuing General election in the country.Both BJP and CPM wants to encash this issue in their party’s interest.BJP has convened CM convention of the BJP rule states and has advised them to hold demonstration in their states against spiraling price rise. CPM party session in Coimbatore passed a resolution asking the government to to check inflation or face agitation any time after April 15. Politburo member Sitaram Yechury said the party’s resolution would be communicated to the government and it would have time till April 15.CPI has also announced an aggressive agitation from April 18, the two Left parties may join hands in holding demonstration and agitation to gain voters confidence.
The idea is not only to make the government deliver but also to not let BJP take the lead in opposing all-time high prices of essential commodities and food grain. CPM further demand includes strengthening of the PDS by universalizing it, restoration of food grain allocation to states under PDS and inclusion of 15 essential commodities among them pulses, edible oil and sugar in the PDS list.
Public distribution system AICC General Secretary Digvijay Singh wondered over the rise in prices after the Union Budget 2008-09 when it had not levied any taxes or duties on essential commodities."There is no shortage of wheat, pulses, edible oil, sugar. Why are the prices then going up suddenly? It has to be because of hoarding and because the state governments have not enforced stock restrictions," Singh said.
He said the state governments should immediately take up anti-hoarding drive to bring the prices under control.Replying to questions, Singh also admitted that the implementation of the recommendations of the Sixth Pay Commission would further add to the inflation.
A day after the Cabinet Committee on Prices announced measures to control inflation that is at a 13-month high, the Food Ministry decided to dismantle two million tons of sugar from the buffer stock starting next month.
The buffer stock was created for a year from May 2007 to April 2008.It also decided to increase procurement of wheat, demand for which has risen due to changing dietary habits in people in traditionally rice consuming states.‘We are going to take precautions-We have to procure maximum (quantity of wheat)," Agriculture and Food Minister Sharad Pawar told reporters in the Capital on Tuesday.The government has to take care of the Public Distribution System, he said and added that changing food habits in the country was fueling demand for wheat.The government was able to procure only 11 million tons of wheat last year as against the target of 15 million tons, forcing it to import 1.8 million tons to boost buffer stock.
On sugar, an official statement said mills are allowed to sell the quantity held in buffer in respect of buffer stock of 2 million tons in the domestic market at any point of time in 2007-08 sugar season from 1st May, 2008 onwards.
Earlier on Monday, futures trading in soybean, soy oil and mustard seeds was suspended temporarily in agri-commodity exchange NCDEX after prices fell sharply on Tuesday, following the government"s decision to cut import duties on all edible oils. In spite of the increase in world cereal production in 2007, a tight global cereal supply and demand situation prevails in the current 2007/08 marketing season. Cereal supplies are low mainly because of dwindling stock levels carried over from the previous season. With world demand showing little sign of abating, international prices of most cereals remain high, and some are still on the increase, while world reserves are heading for yet another decline from their already low levels.
The rice prices on the international market have jumped almost 50 percent, prices are rising each day basis and causing unprecedented volatility in the Asian countries where rice is staple food as India restricted its imports.Asian countries going for free trade in near future is likely to create new order in staple and pulse and cereals across Asians markets and its global impacts. Asian countries Vietnam, China and African countries Egypt are restricting rice exports, and South Korea will release grain from state-controlled reserves to better prices. Food prices all over the world are going through the roof and so spread the risk of social unrest,"" investor Jim Rogers said in Singapore. Food and Agriculture Organization said in February that 36 nations including China face food emergencies this year.
Coarse grain production declined significantly in a few countries along the Gulf of Guinea, notably in northern Nigeria and Ghana, leading to a tight food supply situation at regional level with reports of rising food prices in Benin, Burkina Faso, Ghana, Niger, Nigeria and Togo.
Regarding the state of China, since 10 January, 14 provinces in the southern and eastern parts of the country have been affected by the most disastrous ice rain, snow and freezing weather since 1951 in terms of geographical extension, intensity and related damage. As of the end of January, about 90 million people were reported to be directly affected and millions of hectares of crops, especially vegetables and oil crops are reported to be severely damaged
In spite of the increase in world cereal production in 2007, a tight global cereal supply and demand situation prevails in the current 2007/08 marketing season. Cereal supplies are low mainly because of dwindling stock levels carried over from the previous season. With world demand showing little sign of abating, international prices of most cereals remain high, and some are still on the increase, while world reserves are heading for yet another decline from their already low levels. International trade of cereals is expected to peak in 2007/08, driven mainly by a sharp rise in demand for coarse grains. Although a significant expansion in winter wheat plantings in the northern hemisphere is likely to result in much higher wheat production in 2008, assuming normal weather conditions, the current situation is such that it may require significant increases in production of more than one season’s cereal crop for markets to regain their stability and for prices to decline significantly below the recent highs.FAO reports
The Union Government also advised states to impose limits on stocks of commodities under the Essential Commodities Act, besides asking steel producers not to raise prices.
Asked whether these measures would help in containing inflation, which has touched 6.68 per cent for the week ended 15th March, Chidambaram said: “I sincerely hope so.".
All edible oils in crude form can now be imported at zero duty as against 20 per cent now (barring soya), while the duty on oils in the refined form and vanaspati would be 7.5 per cent compared to 27.5 per cent and 20 per cent respectively.
The government also decided to raise the Minimum Export Price of Basmati rice to USD 1,200 per ton from USD 1100, to discourage export and increase availability in the domestic market.It also cut import duty on butter and clarified butter (ghee) from 40 per cent to 30 per cent.Besides, the 15 per cent import duty on maize was abolished, applicable on import of up to five lakh tons.
The Steel secretary Mr R S Pandey told press that “We talked about the situation of pricing and availability of steel and for long products like TMT bars, the price of which has gone up more sharply than other products in the past two months," further said, “There the major producers have agreed that some of their prices are at slightly higher levels, (and) would consider some rollback," he added. “Companies such as Tata Steel and RINL would provide a relief of about Rs 2,000 per tonne on long products."Indian government is persuading the industrialist to lower prices of their commodities to contain the soaring of inflation which has is pinching the common man and political parties raising hue and cry.
The World Bank making an efforts to fight global food and energy crisis and its President Robert B. Zoellick called for a “new deal" to combat world hunger and malnutrition through a combination of emergency aid and long-term efforts to boost agricultural productivity in developing countries.The World Bank estimates 33 countries face social unrest because of soaring food and energy prices
Zoellick said the time was “now or never" to break the impasse in global trade talks. A “fairer and more open trading system" would encourage developing country farmers to expand production, he said.
The World Bank will nearly double agricultural assistance to US$800 million in Africa. Zoellick also urged wealthy nations to help the UN’s World Food Program meet some $500 million in emergency food needs.
“The United States, the European Union, Japan and other OECD countries must act now to fill this gap – or many more people will suffer and starve," Zoellick said in an address sponsored by the Center for Global Development in Washington.
“The poor need lower food prices now. But the world’s agricultural trading system is stuck in the past. If ever there was a time to cut distorting agricultural subsidies and open markets for food imports, it must be now."
An accord would give developing countries, big and small, more opportunities to become more productive and lower prices through trade. It would also infuse confidence in an economic system stressed by financial anxiety, he said.
However, “powerful voices across the political spectrum, including in my own country, are calling for, rationalizing, protectionism," Zoellick said. “This economic isolationism signals a defeatism that will reap the losses, not the gains, of globalization."
The trade talks are also a “critical test" for striking a global deal on climate change. “If negotiators of 150 economies cannot manage the political trade offs of the Doha Round to reap the clear benefits, it does not auger well for bringing developed and developing countries together on a new accord for climate change."
Zoellick also outlined a plan to encourage emerging economies such as China, India and Brazil to invest about US$30 billion in African nations through government-sponsored wealth funds.
Expanding existing social assistance programs that directly targets poor households is necessary to protect South Asia’s poor in the face of a dramatic increase in global food prices, a World Bank South Asia expert said today.
This entry was posted on Friday, April 4th, 2008 at 8:05 am and is filed under Blogging, Dreams, Shopping, Food, Friends, Games, Goals, Plans, Hopes-Jobs, Work, Careers-Life, News, Parties, Philosophy, Romance-Relationships, Travel, Politics, Contests.
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