CARTOONS OF THE MONTH : Price Rise

JAAGO AAM AADMI...(MSP Vs MRP)

While writing this article, I was reading through a news item published on VJAS that 5 farmers have committed suicide in last 48 hours which is sad news for all of us .The collective Indian society has failed our Farmer brothers by not taking this Government to task. These suicides are happening despite of 3000 Crore package from Prime Minister announced during June 2006 for resolving their issues on priority basis so that the prevailing acute distress can be minimized and farmers’ suicides can be controlled. This was followed by the ELECTION SPECIAL PACKAGE OF RS 60000 CRORES WRITE OFF! Yet the suicides continue…

Keeping in view the interests of the farmers, state and central Government’s announces Minimum Support Prices (MSP) for several major crops from time to time. Farmers are free to sell in the open market or to the Government at the MSP.

The price support policy of the Govt. is directed at providing to insurance to farmers against any sharp fall in farm prices. The minimum price is fixed beyond which the market price cannot fall. Unfortunately still our farmers are not getting fair price for their crops. Many times we see news items such as farmers throwing their crop on streets as they can’t even retrieve transportation cost.

Why is so? Government employees get their salaries revised from time to time by means of pay commissions so are why can’t there be a commission or authority to maintain healthy difference between MSP and Retail price.

Below is a table of MSP and MRP for few crops during 2009 which clearly indicates the failure of the price intervention mechanism operated through MSP and thus failed to protect the farmers with the policy instrument.

Table: Comparison of MSP against Retail Price

Product	MSP for 2009-10	Market Price	% Difference between MSP & MRP
Rice	Rs.980/-	2800-*	190%
Tur Daal	Rs.2,300/-	9400	409%
Moong	Rs.2,760/-	11000	399%
Wheat	Rs.1,080/-	1800-2800	213% (Avg of MRP shown considered)
Sugar Cane*	Rs.1,077/MT	Sugar-44000/MT -**	See comment in note below
Jowar	Rs.860/-	2900	337%
Bajra	Rs.840/-	2300	274%

* One Quintal of Paddy yields 65KG of Rice

** Note: Sugar prices are/MT

Approx 5 tonnes (5000kg) Sugarcane is needed for 1 tonne (1000 kg) of sugar production.

The bottom-line is that Farmers are not getting fair price for their products despite of price rise its middle men/multinationals that are making money. For instance 16 million tonnes of Sugar was exported from India at the standard price of Rs.18 and above per KG to allow sugar companies make windfall profits and now we have to import the same from Brazil at the price of Rs.30, this additional price is directly passed onto the consumer. Similarly, Wheat was available in Punjab at Rs.850/Quintal but UPA Government imported Wheat from Australia at Rs.1,080/Quintal, the same price if had been paid to our farmers from Punjab they would have been more than happy.

Overall Government has failed in ensuring food security for its citizens despite being headed by a renowned economist.

The government cares more for The Khan than for our Khana!

Speculation & Manipulation at Commodity Exchange

Out of 14 lakh ton turnover actual delivery was only 1,400 tonnes. Hence 99.99% of turnover was speculative trading during May to Dec 2009.

It’s time we opened our eyes and see the Shylockian machinations of the UPA government. They will bleed us for 4 years and then give sops in 2014 which is the election year, hoping that the voters forget the past 4 years like we had done this time!

Speculation & Manipulation at Commodity Exchange

At commodity exchange

Out of 14 lac ton turnover actual delivery 1,400 ton
99.99% speculative trading during May to Dec 2009

Sugar

Import-export Manipulation
-- 48 lac ton exported in 2008-09 @ Rs.12.50/kg.
-- Now importing Raw Sugar @ Rs.36/kg

Govt. gave Export & Transport Subsidy to Exporters.
Why govt. did not create buffer stock of Sugar ?

Prices up from Rs 22 to Rs.45 to 50/kg in one year.

Comparitve prices from 2004 to 2010

See the shocking rise of prices over the year!
U can guess who have become millionaires and of course who are the sufferers!
JAGO INDIA!
see the table. AND REACT LIKE NEVER BEFORE!

Product	Qty	2004 price	2010 price	% price rise
		Rs.	Rs.	from 2004-2010
Colgate paste 100 gm	100 gm	16	28	75
Babul Paste 100 gm	100 gm	12	18	50
Tata premium Tea 100 gm	100 gm	12	26	216.77
Sunlight washing powder 500gm	500 gm	25	32	28
Tide washing powder 500 gm	500 gm	40	58	45
Lux Bathing soap	100 gm	11	18	63.64
Bread one pound	one Pound	8	12	50
Eggs	one Dozen	20	36	80
Tur dal	1 kg	28	70	250
Moong dal	1 kg	32	110	343.75
Chana dal	1 kg	24	36	50
Chana(black)	1 kg	22	28	27.27
Rice good quality	1 kg	14	28	100
Wheat good quality	1 kg	9	18	100
Sugar	1 kg	18	42	233.33
Mustard oil	1 Litre	50	68	36
Groundnut oil	1 Litre	84	122	45.23
Sunflower oil	1 Litre	55	80	45.45
Gas cylinder	one pc	244	325	33.2
Petrol	1 Litre	33.15	44.63	34.63
Potatoes	1 kg	4	10	250
Onion	1 kg	10	32	320
Turmeric	1 kg	50	195	390
Chilli powder	1 kg	70	132	88.57
Salt(iodised)	1 kg	8	12	50
Maida	1 kg	10	19	90
Jeera	1 kg	90	150	66.67
Rajma	1 kg	28	65	132.14
Besan (Gram Flour)	1 kg	20	50	250
Cement	1 bag	125	280	224
Steel	tonne	23000	44000	91.3
Bricks	1 pc	1.8	3.5	94.44
Home loans		7%	13%	86

Questions which we ask the UPA Government

1. What have you done to counter the report of The International Food Policy Research Institute’s Global Hunger Index (GHI) estimate ranks India at a low 66 out of the 88 developing countries?

2. What measures have you taken to tackle drought which affected half the country?

3. Why are you unable to counter the deadly Price Rise which is killing thousands and affecting millions?

4. Why have prices of most essential commodities increased by over 200% in your rule?

5. How many black marketers have you arrested and put in jail?

6. Have you taken definitive steps to wipe out the corruption in PDS?

7. Why do prices increase immediately after your food minister declares a scarcity?

8. Who has increased the prices of Petrol by Rs.4 per litre and Diesel by Rs. 2 per litre, leading to further price hikes?

9. Do you care for the steep hike in numbers of BPL families?

10. Why do you pass on the buck to State Governments when you frame policies?

11. Who has cut down on the allocations of foodgrains in the rationing system upto 73 per cent, weakening the public distribution system and thus creating more dependence on the market?

12. Who permitted futures trade in many of the essential commodities allowing speculation and pushing up prices?

13. Who permitted the export of sugar under pressure of the sugar lobbies leading to a shortage today?
14. Where is your so called FOOD SECURITY LAW?

15. Under this- For both BPL and Antodaya card holders the quota will be cut by 10 kg per family from the present 35kg to 25 kg. Who will benefit? Certainly not us!

16. You propose food grains at Rs 3/kg. Hence, Antodaya benefits will be eliminated and Antodaya card holders who at present are getting food grains at Rs. 2 per kg will have to pay one rupee more

17. No foodgrain will be allocated for APL sections. Not only will the APL subsidy be eliminated but even the APL category will be cancelled.

18. While quotas are being cut, the number of ration cards will also be cut. Ration cards are given in many States either to nuclear families or even to individuals. Now it is proposed by the Congress President’s note that ration cards should be given to “joint family comprising all adults and children who eat from a common hearth and reside under a common roof.” Thus a larger number of people will have to share the reduced quota of 25 kg , if this is accepted as the norm.

19. Why has there been no inclusion or extension of the Antodaya to “priority groups” identified by the Supreme Court like the aged, infirm, disabled, destitute; pregnant and lactating women, widows and other single women with no regular support and primitive tribal groups?

20.Why is the present UPA government actually proposes to completely do away with the Antyodaya and subsume it under the BPL category asking them to pay higher prices?

20. Who is responsible for fall in production of food grains?

21. Why the Government imported wheat at prices higher than it was prepared to pay Indian farmers?

22. Why have you the Government completely neglected the production of millets, or coarse grains like ragi, bajra, jowar which can be grown in dry areas?

23. Why do Lakhs of Farmers face problems due to Spurious and High Priced Pesticides
24. Why are the hands that feed the nation are today forced to take their own lives in large numbers.? This is not a natural calamity but government created crisis