D. Goel Pkl. afternoon,4.10pm, Monday, Feb. 14, 2011. As far as our bug-bear of continued inflation of Food -Prices is concerned we have to attend to supply -side Economies or Diseconomies of essential Oils, Dals , Onions, Wheat and Rice and the HASSLES OF STORAGE , HOARDERS AND KEEPING THE STOCK GOOD FOR A BILLION PLUS CONSUMERS just after the harvest , when the speculators slump Whole-Sale Prices andand corner them from cultivators for their Cash Crunch, soon the same product is offereed to them several times over in lean Period before the next Crop, even to the growers themselves. The tragic fate of Potatro Growers in north India or Onion Growers of Gujrat and Nasik are illustrative of this Perverse behaviour of Vegetable Exchange Market over decades. Since , the inelastic demand of Food items is understood , it is incumbent on any State Policy on food to shield both Agrarian Cultivators and Urban Consumers from the shark like rapacity of the Food and vegetable & Fruit speculators ,systematically, by providing Chains of Cold-Storages at Minimum Costs to keep Surplus Harvests for lean months , thus ensuring steady supply of these essental requirements of the entire Country unexploited by Market Smarts!D. Goel
Inflination is big problem for all fastest growing developing Economies but GDP growth should not affect. In 2010 China inflination reached 7% and GDP growth 9.3% Brazil inflination reached 6.9% and GDP growth 5.0% Russia inflination reached 9.5% and GDP growth 4.0% India inflination reached 8.23% and GDP growth 9%
Re: GDP Growth should not suffer because of inflation.
by Karthik on Feb 14, 2011 04:20 PM
Inflation is not that bad, even food inflation for that matter. Its one way of money circulation in the economy, otherwise most of the middle class money goes into assets which dont contribute to the economic growth.
The worrying part here in india is most of the money goes into a small set of commodity traders who dont pay tax, or who use the money for unlawful purposes.
I am talking about pure economics not about middle/poor class grievances or about politics.
Inflation calculated by RBI & M of Finance Food prices are manipulated by SHARAD PAWAR . If we remember Sharad pawar said Onions prices will come down in month of March But it came down in january it self But his statement contributed to postpone declining till January
The govt headed by an obedient servant of Sonia and said to b a renouned economist, is a big failure on account of inflation and corruption. Hope Swamy will b able to nail MMS's master in the corruption cases together with Karunanidhi, Maran etc, as he has claimed.
paradox exists - high food prices reasons either non arrival of fresh stocks of food articles or too much money chasing few available food stocks - inflation down has not touched the agro sector this emplies that construction & infrastructure sectors also have to face the brunt of inflation since millions of daily wage earners have to buy food articles at a high price with the available daily wages - here the need for strong public distribution system with more & more outlets at panchayati levels needed to help the daily wage earners to buy food articles at a govt controlled prices with the available daily wages - opinions differ
Once the banks start charing higher rate of interest from the existing borrowers they do not reverse the rates or reduce the amounts ,if this happens it would provide relief to comman man
Re: when would the banks reverse the Home loan rates
by Ram Sharma on Feb 14, 2011 03:06 PM
when banks increase interest rates to control inflation, interest on FD & loan both increase. Pl should avoid loans to buy homes, cars etc. They should buy only when they hv enough money in hand.