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Created by : Rashmi Patil, Financial services  | 12 18 2009 05:48:56 +0000
Industry : FMCG/Foods/BeverageFunctional Area : India(Markets)
Activity:  343 views;  last activity : 07 06 2010 20:18:09 +0000

The government made a decision on Thursday that government will import essential commodities to improve supplies, as food inflation touched a ten-year high. A host of steps, including zero import duty on wheat, pulses and crude edible oil and allowing imports of various commodities like sugar and rice, have already been taken by the government to tame food prices.

http://www.chamonixchalet.info/wp-content/uploads/2008/01/vegetable_market.jpg

RBI, which had earlier pegged the fiscal-end overall inflation at 5%, revised its forecast to 6.5% and is expected to increase interest rate in January review of its monetary policy.

Do you think Government is taking a right decision?

 
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Top Argument
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Food prices have touched sky high and the common man is suffering - if we happen to look at the monthly purchases of rice, cereals, sugar, oil etc this has almost doubled if a comparison with the prices in 2006. Government taking this measure should bring relief to the consumers in the short run though a lot needs to be done in improving farming practices, flood and disaster management, supply chain etc to give a sustainable growth model for the farmers as well


By Balaji Nagarajan, Sr Manager Marketing Services, Congruent Solutions Private Ltd  12 18 2009 06:40:26 +0000
 
Top Argument
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Government on one hand, ignores the farming community in our country, on the other hand, imports food to fulfill food necessities. How can we call it as an intelligent decision to spend money on something we need not to. In the name of development, government is building factories on agricultural lands which pollute the air, never take actions against the corrupted mediators among farmers and government because of which price rises in the market. Never try to re-establish the farmers who are leaving their lands and coming to cities only because they are not getting anything out of farming. All these results in food declination and then, in the name of fulfilling food needs import foods which will overburden us with the loans we already owe to other countries. Why are they not trying to empower farmers instead of importing food items? Once we used to export food and today we are importing the same. Its so sad....


By Yash Singh, Coresspondent, Star  12 18 2009 05:53:52 +0000
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The decision of govt as and when price raises can regulate the pricesand send warning bells to thehoarders. Govt. decision should be speedy and implemented fastly.


By malladi madhukumar, AGM -MKTG, Andhra Cements Ltd  | 12 27 2009 16:44:50 +0000
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yes when demand and price rises govt should make import earlier than the last minute.This will surely reduce black market price rise individually.


By N.VIJAYAKUMAR , former store management ,system management , GAMMON INDIA LTD  | 12 22 2009 09:04:27 +0000
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Decision of course is right but at a very wrong time when the inflation has already risen to sky. The decision at a very late stage indicates wrong and defective planning when the Government bodies are fully able to know even at the time of harvest how much the commodities have been harvested, how much the food corporations have accumulated and how much they really need to feed the population. Even it is not financially viable at late stage, as it costs much more than that of the near harvesting time of the exporting countries. Distribution system cannot be blamed unless proper stock is made available for distribution in right quantity at right time.

P S Dhingra

Management & Educational Consultant

Dhingra Consultancy Group

New Delhi


By PS Dhingra, CEO & Vigilance & Transformation Management Consultant, Dhingra Group of Management & Educational Consultants  | 12 21 2009 12:55:39 +0000
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govt. needs to restructure the whole public distribution system. make it more transparent, accountable. short term intervention wud not help.


By Priya Varadan, Independent consultant, Self employed  | 12 19 2009 08:48:57 +0000
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Why not, when we are suffering with lack of food, then why can't we import food from other countries to negate the high prices that is there at the moment. I think government is taking the right decision.


By Rashmi Patil, Financial services  | 12 18 2009 05:48:56 +0000
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Hello! Are we looking at the big Picture. It is not the non-availability that is the issue. The issue is High pricing. And when we look at the roots. the farmers are not getting any amount of this hike. Why are we not willing to see inside the issue. The middlemen are the ones basking all the margin, ALL THE INFLATED MARGIN. Why can't we check them. If we simply Import the Goods, the Price Mafias still are there in between. They'll eat up all the cream. What will the government do then? More IMPORTS?


By Sujeet Vishwakarma, Managing Director, RCA Group  | 01 28 2010 05:53:20 +0000
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Rising price of foods could really be checked by importing foods from outside?i think this could not be the solution.If we will start importing,then import tax will be levied on food prices,then thing will the same as now.Yes you can tell that dearth of food will be over.Bt will it be consumable to all levels of population?Now if govt will think of subsidising on food,then also expenditure of govt will be raised,in that case to compensate it with,income should be raised.In turn it will come on the consumer again,because to incrase govt revenue income tax could be increased.Now still do you think it could be a viable solution?If govt wants to spend more money by importing food,then that amount of money could be utilised here only for harvesting.


By roumi chatterjee, asst commercial executive, century plyboard india ltd  | 12 30 2009 07:04:49 +0000
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It is a short term measure that leads to other problems in future.It is suited for countries not capable of adequate production and for India.They are doing it to hide their face for mistakes done in previous terms related to faulty policies reg. farmers,impex etc.


By SUMEET DIKSHIT, G.M. & Business Head-Franchise India Real Estate Transactions & Advisory, FRANCHISE INDIA HOLDINGS LIMITED  | 12 18 2009 13:50:16 +0000
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It appeared on the today's news paper that FM decided to import food items to fight with the rising inflation which recorded 19.5% in November. He said this is slightly  higher when compared to its prevous month. I personally feel that inflation is a within the country issue, import will adversly effect balance of payment position, there by purchasing power of the money will come down, rupee value will come down, but to combat with the present food inflation and to suppot poor, such measure might have adopted. 


By RAMANATHA PRABHU N, Chartered Accountant  | 12 18 2009 07:04:37 +0000
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