Wednesday, June 4, 2014

Food inflation

The crux is that UPA-II  was crucified carrying the cross of inflation like three earlier governments were .The persistent high food inflation, impacting 45 % of the net earnings of the average Indian, is the sword of Damocles that even a majority government can not wish away. Thus the government's top most  priority  must be to tackle the food inflation in the economy. As of today neither the combination of connected ministries nor the men heading them is able to provide a clue to be effectively  tackling food prices. Of course these are early days.The best of Budgets may not help. The PMO must unfold the plan to take firm grip on supply /regulation /distribution and monitoring of food items without loss of time. With Modi's go-getter reputation, this in itself would put a check on speculative trends that invariably lasts well into the festive season of Oct-Nov  and has been the bane of food related inflation even  in normal times.The threats from El-nino should only add to the seriousness and urgency of combating an enemy that has been stalking the nation for upwards of three years now.

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