Price Rise

Topics: Inflation, Government, Commodity market Pages: 2 (643 words) Published: November 30, 2012

This is one topic in which I do not have to think before writing an article. The recent price rise in the essential commodities has hurt the common man where it hurts the most. The prices of onion , tomatoes, pulses have skyrocketed which adds flavor to the otherwise normal lifestyle of below average Indian. The above statement is a sarcasm in itself, but its necessary to show the grave situation which the normal citizens of this country are facing in the normal time.

The prices of pulses which is nearly a staple diet for most of the country has risen to a large extent from the last 2 years. This may be due to less area under production for pulses in country or less per hectare yield of pulses or growth in demand. But the apathy is that there is no supportive government policy which could have helped India to raise the pulses production by giving more incentives to the farmers growing pulses, reducing loses to the intermediaries. One more benefit of higher pulses production is it takes less of nitrogenous fertilizers and is essential for regular wheat rice fields.

The prices of onion has risen nearly 300% or more in the last month. The first reason is inefficient government policy which do not foresee demand supply situations, since onions are perishable quantities. The recent unseasonal rains in Nasik area has destroyed 10% of the crops, but still the quantum of price rise cannot be substantiated. The major culprit here is no control over the last leg of supply chain i.e retailers , they are having the profit margin of more than 50% . They are speculating on the deficient supply and holding the common man on ransom. Moreover in India expert was stopped at a much later stage , which led to the spike in prices for the first instance.The rest and the last reason which is common to all, I would discuss in the later part of the article.

There is another factor which is at play in high inflation rates across the commodities and it is ever...
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