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03.08.2010 BÉEÉÒàÉiÉÉå BÉEÉä ãÉäBÉE® ºÉ]Â]ä¤ÉÉVÉÉÒ càÉäÉÉ cÉäiÉÉÒ ®cÉÒ cè, {É® àÉÉèVÉÚnÉ âóZÉÉxÉÉå ºÉä AäºÉÉ xÉcÉÓ ãÉMÉiÉÉ ÉÊBÉE ¤É½ä ºiÉ®Éå {É® BÉEÉÒàÉiÉÉå BÉEÉä ãÉäBÉE® VªÉÉnÉ +É]BÉEãÉ¤ÉÉVÉÉÒ cÖ
03.08.2010 SHRI MOHAMMED E.T. BASHEER (PONNANI): Mr. Chairman Sir, I thank you very much for giving me this opportunity to make my observations on this very important matter pertaining to our nation. Shri P.C. Chacko, in his thought-provoking speech, was substantiating with facts and figures that the inflation rate is coming down and similarly price rise is also showing a downward trend. It is true. But when the inflation is at 10.55 per cent, even from this side nobody is saying that it is a satisfactory figure. The Chairman of the Prime Minister’s Economic Advisory Council Dr. Rangarajan himself says that the inflation rate of 10.55 per cent is not in the comfort zone. But he is also optimistic that the inflation would start easing by August-September and go to 7 to 8 per cent and by December it would fall to 6.5 per cent because we are expecting a good monsoon and let us hope for the best. Sir, while discussing about the reasons for the inflation and price rise, one thing is very sure that certain things are beyond our control. As mentioned by others, drought and the impact of global pricing are, of course, not within our control. But administrative and regulatory measures and taxation policy are within our control. There, we have to take some serious action. According to the RBI statement, as we all know, the agricultural drought till the end of the last year and the rising international price of crude oil were the main causes for inflation. Another important factor is the poor productivity in our farms. We all know that cultivation trend is diminishing in our country and there also we cannot ignore this fact. Until and unless we ensure productivity in our agricultural sector, this problem will remain. As far as administrative and regulatory measures are concerned, the Government can do a lot of things. The first thing required is coordination between various Ministries. The Ministries of Finance, Food, Consumer Affairs and Public Distribution and Agriculture must have close coordination among themselves. That should be the first administrative measure we can take. 229
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