People's Democracy

Editorial

UPA Govt Blind to

People’s Miseries 

THE issue of relentless rise in the prices of all essential commodities has rocked the winter session of the parliament as it began. This is only understandable.  Food inflation now is over 12 per cent. Vegetables are costlier by 26 per cent, pulses by 14 per cent, fruits by 12 per cent, eggs, fish and meat by 13 per cent and milk by 12 per cent. 

During the last two sessions of the parliament, this very issue continues to dominate reflecting the agony and concerns of the aam admi. In the first of these sessions, the Left parties had agreed, in order to prevent the disruption of the parliament, to an agreed resolution moved by the Chair in both the Houses on this issue. A discussion followed and the adopted resolution called upon the government “to take all measures to protect the common man from the negative effects of inflation”.

Despite this, there was absolutely no relief to the common man.  On the contrary, the situation only worsened. In the last Monsoon Session, once again, this issue dominated the proceedings, naturally.  The government and the principal opposition party came to an understanding on a common draft resolution moved by the BJP in both the Houses.  The CPI(M) opposed this resolution on the ground that it contains no effective measure that the government will undertake in order to contain inflation.  The CPI(M) members moved concrete amendments to this effect and pressed for  a vote in both the Houses. 

Such has been the callous attitude of the government of having only toothless discussions, on this issue of price rise which is eating into the vitals of the livelihood status of the common man. 

In a similar vein, the government proposed that this winter session should begin with yet another discussion on price rise.  This was to be based on an eleven page statement laid on the Table of both the Houses by the finance minister.  The Left parties opposed this move on the ground that this does not put any pressure on the government to announce tangible measures to tackle this runaway inflation.  The CPI(M), therefore, moved for a discussion under Rules of parliamentary procedure that require a voting at the conclusion.  The pressure of a vote, it was hoped, would make an obdurate government move towards announcing some concrete measures to tackle inflation and provide relief to the people.  Thus, reflecting the agony of the vast masses of Indian people and in order to force the government to take tangible action, the CPI(M) pressed for a discussion  under such Rules which led to the disruption of the parliament for a  day.  The government’s obduracy had left no other course open.

The CPI(M) and the Left have been consistent advocates for the smooth and longer functioning of the parliament. In fact, the CPI(M), on the Floor of the House, proposed an amendment to the constitution  making it mandatory for the parliament to sit at least for a hundred days during a calendar year.  This, we maintain, is necessary to implement our constitutional framework and spirit where the sovereignty of the people is exercised by making their elected members to the parliament accountable to them. This, in turn, requires the government of the day to be accountable to the parliament.  This can only be ensured if the parliament functions properly and for adequate duration. 

Despite this, the CPI(M) had to undertake this course in this winter session both to reflect the concerns of the aam admi and to express solidarity with them and share their agonies  that continue to mount due to this price rise. 

A discussion under Rules entailing voting would have put pressure on the government to consider accepting at least three of the suggestions that the CPI(M) has put forward to contain this price rise.  First, there is a need to immediately ban speculative trading in agricultural commodities, particularly in the forward/futures trading.  As repeatedly argued in these columns earlier, such speculation feeds the rise in prices in an exponential manner. 

The cumulative value of trade, according to figures released by the Forward Markets Commission, for the period April 1 to October 31, 2011 was Rs 106,36,960.76 crores.  This went up from Rs 61,61,659.06 crores during the same period last year. A phenomenal increase of 72.63 per cent.  For the same period, the cumulative value of trade in agricultural commodities went up from Rs 7,06,214.23 to Rs 10,83,495.03 crores.  An increase of 53.42 per cent.  Such a staggering growth in speculative trading is a major contributor to the current price rise.  There is, therefore, the need to immediately ban, at least suspend, such trading in all agricultural commodities.  But the government refuses to do this and thus, facilitates super profits at the expense of the misery of the people. 

Secondly, there is a need to rollback at least the recent hikes in the prices of petroleum products.  These have had a cascading effect on the overall inflation due to higher transportation costs.  The argument that these hikes have become necessary because of the “losses” incurred by the oil companies is a complete fallacy.  There are, in reality, no losses incurred by our major oil companies. The audited financial results for the year ending March 31, 2010 show that the Indian oil company’s net profit was Rs 10,998 crores. IOC had a reserve revenue surplus of Rs 49,472 crores!  During April-December 2009, the other two public sector companies – Hindustan Petroleum Corporation and Bharat Petroleum Corporation – have earned profits of Rs 544 crores and Rs 834 crores respectively. 

Further, the government is reportedly earning Rs 1,30,000 crores as revenue from taxes on petroleum products, this year.  The total amount of subsidy sanctioned by the budget is only Rs 40,000 crores.  The government is making a profit of Rs 90,000 crores at the expense of the people!

Thirdly, the government must immediately distribute the stocks of foodgrains rotting in the central godowns to the states at BPL prices for distribution through the public distribution system.  This will ease the pressure on the rise in the prices of food articles.  As of now, the foodgrains in the government godowns are close to 600 lakh tones. This is nearly two and a half times more than the required norm of buffer stock. Yet, this UPA-II government refuses to undertake this measure. 

Instead of undertaking at least these three measures, the finance minister’s statement labours on the fact that “there has been a steady improvement in the inflation situation in India” (SIC). Amongst the reasons that have been adduced such as global developments etc, the mismatch between demand and supply is particularly highlighted. Strangely, the finance minister speaks of “sustained high economic growth in recent past has led to improvements in purchasing power in both rural and urban areas”.  This is being said at a time when the Planning Commission itself admits that the overall per capita consumption of cereals and pulses had fallen by 8 per cent in rural areas and 3.3 per cent in urban areas.  Government appointed commissions have reported that nearly 80 crores of our people barely survive on less than Rs 20 a  day.  Surely, either the government is blind, or, it is deliberately misleading the nation to justify the imposition of such burdens on the people through this price rise. 

The CPI(M), therefore, reflecting the concerns of the Indian people and seeking redressal from their agonies will press both inside and outside the parliament, through popular struggles of the people, to force the government to at least  implement these three measures, amongst others, to contain this runaway inflation.

(November 23, 2011)