How inflation could be controlled?

We have never seen political willingness towards control of inflation. Irresponsible remarks are very common from political arena. Have we ever seen any positive move from the government or opposition side towards control of this big issue? No, only verbal battle.

Economic planning should be realistic. Government should keep all social classes in mind before planning. Price of all essential commodities should be controlled by the government. Agriculture and Oil price plays major role in inflation and this sector requires government control.

Promotion of agriculture  is a must and more government support required.  Govt. can,t  control natural calamities but could sense price rise and may take precautionary measures. For example we can,t afford to export rice or pulses if yield is poor.

Oil price hike increases transportation cost and the cost of the product. I personally not in favor of subsidy but Considering mass of the poor people of India, govt. could extend subsidy for few more years and could try to bring them up by providing more employment opportunities.

I agree with Kavita that corruption which was always there in the country but in a hidden way has now grown to such OBSCENE PROPORTIONS and prices are always on the rise. Let us look at the scenario of price rise : • The farmer grows fruits and vegetables. He is no more the gullible grower. He is now a business man. Those who can reach the city/town, do so and those who can not; sell to those who can. The one who comes to the city, reaches the market and most of the produce is sold in auction. • Those who bid in the auction bid the price in such a way that the market can absorb. • When it comes to food grains and other commodities, we now have commodity markets. Most of the transactions are not conditional on actual delivery. A bidder buys produce and sells when he gets his satisfactory margin. The buyer subsequently, also looks at his margin. Finally, when actual delivery takes place, the one who has received the delivery has to recover his investment plus profits. The produce therefore hits the market in pre-determined prices having gone through many layers; which is way above what it could have been, when the farmer sold at the regulated market and the retailer bought in the regulated market to sell to the end user. • Retailers are in the unorganized sector. If prices are to come down owing to global trends, it is the retailer who has to reduce. He knows that the consumer is ready to pay whatever he asks. He does not bother to reduce the price… • If a Government has to act, it should know who is profiting obscenely. In an era of commodity markets, obscene profits are not there but many layers of profiteering happens. • Let us look at the hotel industry. The Government in Karnataka fixed prices of each product and the weight; giving thrust on quality issues too. If the food joint is a small one, prices are lower but if it is an upgraded one, prices are slightly higher. In the case of food grains; fruits and vegetables, however, if the size of the outlet is smaller, prices are usually higher…And there is absolutely no record of what has been sold and at what price… I would like to suggest the following solutions : • Form common food products pool, standardized only on quality, vintage etc • Release all products at standard weights and in packed condition only • Mark purchase date, purchase price and maximum retail price • Fix percentage of profits for retailers, while allowing consumers to buy directly from the common pool too • Take strict action on those who charge higher than the MRP • Form a price control squad • Start measures to increase yield per acre • Improve cargo facilities and air-conditioning • Allow FDI in retail • Provide extra facilities for retailers, including provident fund, ESI etc. • Encourage service providers in food industry viz. transportation, refrigeration, packing etc. Do not allow them to trade. Their job is only to transport – from the point of production to the point of sale. Ensure that all those involved get PF, ESI etc. • Sale should only take place either at the food products pool or at retailer end. Purchase should take place only at the food products pool. In all this, where does Manmohan comes into picture? Most of the above, becomes responsibility of the State, except the decision to allow FDI in retail! Let the Food Ministry headed by Pawar handle FCI and ensure distribution to BPL families…Minimum support price could be a Government decision which the Food Products Pool has to follow meticulously. 2G spectrum scam and JPC/PAC is a different topic altogether. Let us not confuse the issue. This topic is on price rise and let us understand the price rise scenario properly.

Increase a productivity is a best solution for controlling inflation. contribution of each and every citizen is very important in this issue.

I agree with ideas given by experts here. But According to me, We have changed the definition of Inflation. We can't say that we are just victims of rapid inflation. Whereas we can say like that there is economic imbalance among our population. i.e. there is huge gap between per capita income of rich and poor. Let say an example:- if we are saying that prices are increasing then why not we are discussing that our income is also increasing. I mean to say that if economy is growing then prices will also increase at some extent. If we are comparing the prices of consumable or luxury goods with 5-10 years back then also compare the average income of present with back. Development of I.T., financial & BPO sector increased our earning capacity. It is effecting directly on our purchasing habit. It is one of the important factor these days which help to increase prices with new innovative products. Liquidity in economy due to financial loans by NBFCs or Banks may also help to do so. We wants to earn more and more by investing our money rather than savings like 5-10 yrs back. Govt. alone can not control it. Because if govt will take some hard steps to control it then we feel that govt is bounding us and on other side, opposition parties want to redeem the situation for his sake. Demand of crude oil (for personal vehicles itself petrol/diesel) is increasing rapidly. and increase in crude prices direct effect on prices for moving items. But we are not thinking to save fuel whereas we are watching Ads to save it from last 10 years. Proper financial planning (savings/expenses/investment) help us to control inflation. Balanced economy is the method to stay with inflation. Govt can try to reduce the gap among population in terms of income.

once the economic planning is done automatically the natural resorces conserved in one or the other ways..so i think inflation can be controlled atleast in this way..

rulers willpower can beat inflation by adopting correct policies.public friendly policies can help do so.