[Marxistindia] Accelerating inflation in food articles

[news from the cpi(m)]

                                                       December 11, 2009


Press Statement



The Polit Bureau of the Communist Party of India (Marxist) has issued
the following statement:



                Accelerating Inflation in Food Articles


The Polit Bureau of the CPI (M) expresses its deep concern at the
galloping food price inflation (WPI), which crossed 19% in the week
ending 28th November. The inflation rate stood at 15.5% in mid-November
and 13.3% at the end of October. It is clear that there is accelerating
inflation in food articles with the prices of vegetables (particularly
potatoes and onions), pulses and cereals witnessing the steepest climb.
Over 50 paisa in every rupee spent by an average Indian per day is spent
on food and over 60% of India’s population spends less than Rs. 20 per
head per day. The intense suffering of the masses in the face of
galloping food prices cannot be overemphasized. 


India is the only major developing economy in the world where prices are
rising. In the backdrop of the global recession, food and fuel prices
have been falling across all countries. This exposes the failure and
callousness of the Congress led Government. 


The galloping food prices are primarily being caused by the corporates
and big traders, who are utilising shortages for hoarding and reckless
profiteering. The Government has lost control over food prices due to
the pursuit of free market policies. The CPI (M) demands that the UPA
Government take the following immediate steps in order to reign in food
price inflation:


      * The Government, in coordination with the State Governments, must
        launch a countrywide crackdown against hoarding and
        black-marketing. All private traders of food articles must
        disclose their stocks and release surplus stocks. 
        
      * Futures trading in all food articles must be immediately
        banned. 
        
      * The Government must release cereal stocks through the PDS by
        increasing the rice and wheat quotas for the States. The Food
        Security legislation should be tabled without any further
        delay. 
        
      * The Government must supply sugar, pulses and edible oils through
        PDS outlets at cheap rates. 
        


The CPI (M) will intensify the struggle against price rise till the UPA
Government initiates these steps in the coming days.