At present the prices of all essential commodities and daily usable vegetables prices are soaring against the market trends of recession. Incomes are reducing whereas the prices are increasing. The general rate of inflation is very minimum whereas the price inflation index for essential commodities is at 18% to 20% which against general trend of market recession.
Because of reduction of incomes and prices increasing the common man is suffering from both angles in opposite direction. Industrial growth is not comparable and prices of capital and industrial goods are not gaining good prices whereas the prices of essential commodities are increasing beyond the reaching of the common man.
The prices of pulses, rice, wheat, sugar, vegetables and other essential commodities has increased more 70% when compared to last year. It may not be the problem due to low production but it may be due to supply, artificial shortages, hoarding, stocks maintained by various dealers. Hence there should be check on stocks to be held by each dealer and Maximum Retail prices as prevailing for petroleum products. Also the farmer is not getting good price whereas the consumer has to pay high prices. It may be due to stocks maintained by the dealers, problems in supply of goods, encouragement of good profit by maintaining stocks. It seems Hoarding became more profitable than trading and manufacturing, production.
To overcome the situation, there is necessity of check on stocks, finance for stocks, prices to consumers, quality checks etc.
Also, the high prices can be shown as encouragement for agricultural activity as more profitable than any activity and to encourage more and more areas of agricultural operations. The assistance may be accorded in the form of quality seeds, pesticides, fertilizers, marketing, storage, finance facilities to the real farmers. This step gives more and more employment opportunities to the sections of unorganized labour and encouragement for rural development, self employment opportunities at various unorganized areas.
There may be problem of shortages due to low production in some areas of floods, drought but the situation may not be serious as existing if checks are maintained for stocks, prices, finance, storage misused by the traders themselves or in the name of farmers.
It is astonishing to state that there is growth in agricultural production according to Central Govt. when compared last year whereas there is acute shortage of goods in the market.
Also there should be need of monitoring of crops planning, supply of goods, maintenance of stocks, finance on stocks, storage of stocks, marketing facilities, availability information etc.
