MEHANGAI MAR GAYI - Bharatiya Janata Party

MEHANGAI MAR GAYI
Increasing Poverty, Rising Prices, Super Inflation
Mr. Prime Minister “Who is responsible for this mess?”
Nitin Gadkari’s 14 questions to Dr. Manmohan Singh
BHARATIYA JANATA PARTY

Faulty Economic Policies of Congress Govt.
Result - “Super Inflation”
Once again India has entered into double‐digit inflation.
Inflation was ‐1% in August 2009 gone upto 12 % in March
2010. Faulty and wrong economic policies of the Congress
Govt. has resulted into :
• Super Food Inflation of 20%
• Food Prices doubled in Congress Regime
• Industrial Growth 19%
but Agriculture growth ‐0.2%
2

It is Garibi Badhao not Garibi Hatao
• Commodity Exchanges have become Dens of Speculation
& Manipulation
• Beneficiaries :‐ Multinationals, Big Corporate Houses,
Manipulators, Speculators
• Sharp increase in Poverty, People living Below Poverty
Line increased to 42 crores.
• Sharp disparities between price paid to Farmers and
price paid by Customers.
• Food grains get rotten and
poor people struggling for food

Food Security in Danger
India becoming Import dependent
Economic Survey says :
“The‐large magnitudes of both poverty and inequality which
coexist with growth. From National sample survey (NSS) on the
distribution of consumption expending, And employing the
consumer price index of agricultural labors. The consumption
of the poor people (lower 20% of the Indian population) has
come down (I.e. poverty & inequalities has increased.)”
• Inflation / food inflation highest in Congress regime
Period % Period %
Dec. 2009 19.95 1973‐74 22.7
1980­81 11.4 1991‐92 20.2

Inflation, Super Inflation – Price Rise
• Wrong economic, agriculture, import‐export policy
resulted in inflation, super food inflation
Period Inflation, ­ %
2008 12
August 2009 ‐1
March 2010 11+
• Food inflation is 17 to 20% for the last 20 weeks
• Mr. Prime Minister “Where have things gone wrong?”

INFLATION IN THE WORLD & INDIA
Country Inflation %
China 2.7
America 2.6
South Korea 2.7
Europe 0.9
Hong Kong 1.0
Taiwan 2.4
Malaysia 1.3
Singapore 0.2
India 11.0
• 11 % inflation in India is highest in the world
• Though Chinese GDP growth is 9.5% (India 7.2%), China has 2%
inflation and India 11%
• Mr. Prime Minister “Do you deny that inflation in India is 11%
as against global inflation of 1 to 2%?”

Global Inflation
7

Essential Commodities Prices
Double in India compared to world
Item
Rate per kg
International Price Price in India
Wheat 8.00 14.50
Soybean 16.24 22.50
Soya Oil 40.06 46.00
Sugar 17.68 38.00
• Sugar price in India is more than double and wheat 80% more
than prices in other countries
Mr. Prime Minister, “Is it not true that the prices of food
articles are 80% higher than in the world market?”

Prices of Essential Commodities Doubled in Congress Regime
Price Rs/kg
Item 2004 March 2010
Wheat 9 24
Rice 10 28
Sugar 14 37
Ground Oil 40 100
Chana Dal 25 52
Tur/Mung Dal 24 88
Milk 14 32
Kerosene/liter 18 35
Mr. Prime Minister “Is it not a fact that the prices of essential
commodities doubled during your regime?’’
9

Up & Up – every item, prices moving upward.
Product Quantity 2004 Price
Rs.
2010 Price
Rs.
Increase in
%
Colgate Paste 100 gm 16 28 75
Babul Paste 100 gm 12 18 50
Tata Premium Tea 100 gm 12 28 133
Sunlight washing
powder 500 gm 25 32 28
Lux Bathing Soap 100 gm 11 18 64
Bread one pound 400 gm 8 15 80
Eggs One 1.50 3 100
Mr. Prime Minister “Don’t you agree that down­trodden &
middle class is finding it difficult to match two ends?”

Export Import Scam/Manipulation
• Frequent, non‐transparent, manipulative export–import
policies
• 48 lac tons sugar exported at Rs.12.50 and re‐imported at Rs.
22 to 32 per kg
• Inferior quality of wheat imported at Rs.18.50 while Indian
farmers were paid Rs.8.50 per kg
• Hundreds crores African Countries Rice Export Scam
• Sugar‐2008‐09 – Export duty exempted
• 2009‐10 – Import duty exempted
Mr. Prime Minister
(i) “Do you plead ignorance about your scandalous export –
import policies?
(ii) You prefer to export sugar at Rs.12.50/kg and import it at
Rs.22 but not create any buffer stock. Don’t you owe an
explanation to the people?

Garibi Hatao ya Garibi Badhao
Phenomenal rise in Poverty
• Number of Poor has gone up during the Congress Regime
• According to the Planning Commission’s – National
Sample Survey – Below Poverty Line (BPL) population in
rural India was 28.3% in 2005
• As per 2009 GOI Tendulkar Committee, 41.8% of rural
population is living Below Poverty Line
• The Planning Commission put BPL population in its 2005
report at 31 crores. December 2009 Tendulkar
Committee puts it at 42 crores.
• Mr. Prime Minister “You say garibi ghatti hai.”
Then why 42 crores people of rural India are still
below poverty line? Are you really giving them food?

Mismanagement, Manipulation of buffer stock
• Government godowns over flowing with rice and wheat
• Against buffer stock requirement of 200 lac tons Govt godowns
have 453 lac tons as on 1 st March 2010.
• In spite of huge production, huge buffer stock, prices gone up
rapidly. Why Govt. did not release, use the buffer stock?
• Mr. Prime Minister ‘Govt. godowns are overflowing & food
grains are getting rotten. Then why prices are
skyrocketing, leaving poor people half fed?
WHEAT RICE TOTAL
BUFFER NORMS 82 118 200
ACTUAL STOCKS 183.88 269.50 453.38

Poor struggling for food
• Though Govt. godowns are full of food grains, poor struggling
for food
• Saxena Committee of GOI states that 23% of poor people do
not have any ration card
• Only 49% of the eligible poorest have BPL/Antyodaya Anna
Yojana cards
Mr. Prime Minister “Is it not true that the Govt appointed
Saxena Committee pointed out that 51 % poor have been
denied BPL ration card and deprived of food grains?”

Ignoring Agriculture
• On the one hand, Congress Govt. has failed to control the
price rise, failed to provide food security. The Budget has
resulted in further inflationary trends. Agriculture
growth on December 2009 is negative –0.2 %. In spite of
this, the Govt. has provided a meager Rs.900 crores, i.e.
0.075%, for agriculture development out of Rs.12 lac
crores total budget.
• Mr. Prime Minister “What do you have to say about
this?”

COMPARISON OF PRICE (MSP) PAID TO FARMERS
AGAINST PRICE PAID BY AAM AADMI
Item
Price Paid to
Farmers Rs./kg
Retail Price
Rs./kg
%
difference
Rice 9.80 23.00 135
Tur Dal 23.00 90.00 290
Moong 27.60 70.00 150
Wheat 10.80 17.00 65
Jowar 8.60 13.00 50
Bajra 8.40 15.00 75
Mr. Prime Minister “Why farmers get the least, aam
aadmi pays the most?”

Commodity Exchanges Den of
Speculation & Manipulation
• Essential, i.e. Agricultural Commodities are mainly traded at
National Commodity Exchanges (NCDEX)
• Out of Rs.8,03,842 crores turnover of 2009 at NCDEX, delivery
was 0.28%, i.e. Rs.2,243 crores
• Artificial turnover pushes up the prices of food items
Total Turnover Speculation Actual Delivery
Amount
Rs. Crores
% Amount
Rs. Crores
% Amount
Rs. Crores
8,03,842 100 8,01,519 99.71 2,243 0.28
%
• Mr. Prime Minister, “Manipulative turnover/ demand is
pushing the prices. Whom are you benefiting?
Speculators? Manipulators? Multi­nationals?

NCDEX – COMMODITY EXCHANGE
Turnover / Speculation / Actual Delivery – 2009
Month
Actual Delivery
Amount
Rs. In crores
Speculation
% Amount
Rs. In crores
%
Total Turnover
Rs. In crores
January 634 1.35 46161 98.64 46795
February 147 0.35 41593 99.64 41740
March 128 0.31 40931 99.68 41059
April 115 0.17 65007 99.70 65202
May 125 0.27 50907 99.75 51032
June 108 0.16 45882 99.76 45990
July 72 0.23 73010 99.90 73082
August 99 0.10 93113 99.89 93212
September 217 0.36 59211 99.63 59428
October 165 0.21 76110 99.78 76275
November 175 0.16 105697 99.83 105872
December 258 0.24 103897 99.75 104155
TOTAL 2243 0.28 801519 99.71 803842

Govt’s inflationary statements help speculators &
manipulations.
• Government ministers go on making speculative statements
about the food shortages / less production
• Agriculture Minister, Finance Minister just few weeks back
stated that sugar production for 2009‐10 shall be 141 lac
tons
• Sugar prices touched Rs.50 per kg
• Now Sugar Industries Association announced that sugar
production would be 178 lac tons for 2009‐10
• Sugar prices started falling below Rs.40 per kg.
• Mr. Prime Minister “What are the vested interests of
your Govt. in making suggestive forecasts about
shortages in food production? Is it to check prices or to
create panic?”