(Weekly Organ of the Communist Party of India (Marxist)
December 20, 2009
Accelerating Inflation in Food Articles
The Polit Bureau of the Communist Party
Polit Bureau of the CPI(M) expresses its deep concern at the galloping
price inflation (WPI), which crossed 19 per cent in the week ending
The inflation rate stood at 15.5 per cent in mid-November and 13.3 per
the end of October. It is clear that there is accelerating inflation in
articles, with the prices of vegetables (particularly potatoes and
pulses and cereals witnessing the steepest climb. Over 50 paisa in
spent by an average Indian per day is spent on food and over 60 per
The galloping food prices are primarily being caused by the corporates and big traders, who are utilising shortages for hoarding and reckless profiteering. The government has lost control over food prices due to the pursuit of free market policies. The CPI(M) demands that the UPA government take the following immediate steps in order to reign in food price inflation:
1) The government, in coordination with the state governments, must launch a countrywide crackdown against hoarding and black-marketing. All private traders of food articles must disclose their stocks and release surplus stocks.
2) Futures trading in all food articles must be immediately banned.
3) The government must release cereal stocks through the PDS by increasing the rice and wheat quotas for the states. The food security legislation should be tabled without any further delay.
4) The government must supply sugar, pulses and edible oils through PDS outlets at cheap rates.
The CPI(M) will intensify the struggle against price rise till the UPA government initiates these steps in the coming days.