gÉÉŌ A.]ÉŌ. xÉÉxÉÉ

03.08.2010
∗ SHRI S. SEMMALAI (SALEM): Prices of essential commodities are rising
everyday. People are suffering under the impact of unprecedented price rise.
Inflation after a dip is in the increasing trend. People are finding it difficult
to meet both ends. Why is this situation? Faulty planning, wrong priorities and
failure of the Government. Both the Centre and States have failed to control
prices. Government may say this is due to global phenomenon. Don’t say it is a
global. In China, Malaysia, Brazil and even in Sri Lanka prices are not much
rising. In 2008 in these middle income countries food inflation was double digit.
At this time India has 7.2% inflation. Subsequently, food inflation came down to
single digit in the above countries. While India witnessed double digit food
inflation (23%). The Wholesale Price Index (CPI) inflation stands at 13.9%. At
both Wholesale and consumer level food prices are rising faster than general
inflation.
The hike in fuel prices has had cascading effect on prices of essential
commodities. Why the Government is adding fuel to inflation fire. RBI in a
statement on July, 2010 stated that the recent increase in fuel prices will have an
inflation with second round effect being felt in the month ahead. World Bank in
August 2008 had estimated that 456 million Indians were poor by earning less
than 1.25 dollars i.e. Rs.50/- a day. Arvind Virmani, former Chief Economic
Advisor estimated that it would cost just 22,478 crore rupees to lift all poor people
above poverty line.
I would like to state that a Government which spends 40,000 crore rupees
for conducting Commonwealth Games and has written off 5 lakh crore rupees on
III heads to super rich and corporate is not coming forward to spend 22,000 crore
for its Aam Admi.
∗ Speech was laid on the Table.
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