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Moneycontrol India :: News :: Politics of inflation; hopes and despair :: :: Economy :: Jayanti Natrajan, National spokesperson for the Congress and Member of Parliament,D Raja, National Secretary, CPI
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Politics of inflation; hopes and despair
2008-04-04 15:47:22 Source : Markets Midday/CNBC-TV18
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Jayanti Natrajan, National spokesperson for the Congress and Member of Parliament said that the Wholesale Price Inflation (WPI) is expected to do down in the near future. She added that the government is likely to intervene directly in sectors to contain inflation.

 

Meanwhile, D Raja, National Secretary, CPI and a leader in the Rajya Sabha said that the UPA government has miserable failed to contain inflation. According to him, the government should streamline the public distribution system (PDS) to subsidise prices. Raja added that they will intensify their agitation against inflation across the country.

 

“My party is certainly concerned about the rising prices. We are a party that has come to government on the plank of the aam admi and we are very concerned,” Natrajan said adding that one should also remember that inflation is governed by several external factors and internal factors.

 

Natrajan said the Congress is watching with concern the price of steel and the prices of cement and that they have spoken about it in their statement voicing concern. “I am sure the government will take whatever steps need to be taken to contain these sectors as well within limits,” she added.

 

Raja is of the opinion that the government should have some long-term strategy to increase the productivity in agriculture and increase production of food grains and agriculture. He feels the government should have gone for certain strong short-term measures like streamlining the public distribution system, ensuring the supply of essential commodities to people at subsidized prices and banning forward trade or online trade forthwith. “ The government should have launched measures against hording and black-marketing and strengthened the Essential Commodities Act. I do not know what Mr. Chidambaram as Finance Minister is saying or what the government is saying,” he said. According to him, the government keeps saying that they are taking all fiscal measures and monetary measures but finally inflation keeps increasing. “They say this rise is quite normal and there are many external factors. I am surprised to see the UPA government pleads such helplessness and indigence in breast-beating and telling people that it is common, normal. People will have to accept that. What is the government there for in power?” he questions.

 

Raja feels the government is not doing anything adequate and if this situation continues, he says, the CPI will be left with no other option than go to the people and agitate. “In fact, the CPI and all Left parties have plans to go for countrywide agitations. We will intensify the agitation and April 17 and 18,” he added.         

 

However, Natrajan is of the opinion that the responsibility of the PDS, tightening of the PDS, containing hoarding and black-marketing and all these are matters that States have to corporate with the Central Government on. “This is not something that the Central Government alone can do directly,” she said adding, “It is not a light reference to externalities because all over the world there is global water scarcity there is a global shortage in food production and I think that these things have to be taken into account before we say put blame on government. Above all I would imagine that we should ensure that there is absolutely no politicizing of such an important issue.”

 

Commenting that the government is very conscious of its responsibilities and that they will ensure that prices start going down Natrajan added, “We are not giving up the responsibilities. We are very well aware why we are in government and we will see to it that the prices go down very soon.”          

 

Raja however feels this is nothing to do with politics. “We are concerned on how to control inflation, how to ensure the availability of essential commodities to the people? That should be the concerned of everybody particularly those who are in power, it is not of any use blaming the state government,” he said.

 

“I understand that there are some external factors. Even Mr Chidambaram said on record that the US is diverting 20% of the food grains for bio-fuel. But what is our concern on that? We have to take steps to increase productivity in agriculture. The 11th 5-year plan has fixed the target to 4%, but what is the government’s effort to increase productivity in agriculture. In fact agricultural growth is not increasing but is declining. It is deep crisis and the UPA government should realize the gravity of agrarian crisis today in India,” Raja explained.

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