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Young India Movement

Wednesday, December 29, 2010

Manmohan Singh Government causing price rise

Manmohan Singh Government causing price rise

In earlier decision Manmohan Singh Government has again allowed Futures trading of sugar from 27 December, 2010 after removing 19 months restriction.

Immediately on 27 December 2010, National Commodity & Derivative Exchange (NCDEX) opened January contract of sugar with Rs.3049 and ended the day with Rs.3079 per quintal. Fall of global production of sugar will have further rise of sugar prices in international market pulling India’s domestic market with it.

Subsidies were given earlier to exporting trading companies for sugar export and, when country faced sugar shortage, big sugar companies were given import subsidy; both earning huge profits imposing sugar-price burden on the people.

Similarly, Manmohan Singh Government has given subsidies to onion exporting trading companies to export onion from September 2010, thus, deliberately causing shortage leading to shooing up of onion prices. Now, imports are being subsidized to private traders by removing all duties. The value of exported onions was up by 26 per cent over the previous year. As a result some big trading companies as well as hoarders are making huge profits while the income of common people is being looted through high prices.

Such policies to provide benefits to big market players, have led to the record food inflation in the country with shooting price rise of food grains to sugar; and, now, of onions and other vegetables.

The Manmohan Singh Government still refuses to ban futures in essential commodities including wheat and potatoes.

Deregulated price of petrol is also having cascading impact on the prices of other commodities.


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