Govt. of India need to take some of the important decision in controlling price rise on essential commodities and food items. The incentives given to exporters for exporting food items need to be completely withdraw and some tax need to be levied. India and other food exporting countries can play a vital role in controlling even global price rise by removing all export subsidies/ incentives and imposing new tax on food export into middle east and OPEC nations.

Such drastic decision need to taken up because the international Oil cartel not ready and willing to reduce oil prices while they are getting food items cheaper from India like nations. India need to impose more levy on export of essential commodities like food items, cement, steel, iron ore and other raw material to other nations and make balance with the rising oil prices. When India and other nations compelled to levy new tax the OPEC oil cartels, compelled to reduce oil price and India needs and other agro producing nations need to take a joint lead on this issue. A price stability can ensure both domestic and international level.

The next thing govt. can do is to strengthening PDS system. The food and vegetable prices sky rocketing now. The hoarders, and market manipulators are responsible. The sudden growth of big retail chain across India is one of the major problem for sudden and uncontrolled price rise as big traders, with retail chain can easily manipulate the market and engage in speculation. There is no mechanical available to check hoarders and manipulators in preventing such speculation. Other thing is that they have big godowns where they stock large quantities of commodities. After opening up retail sector, it is easy to make speculators and hoarders to manipulate the market.

At this circumstance what the govt. can do now is to import commodities from neighbouring countries and supply through PDS and other distribution system. Big traders and big retailers should be allowed to stock maximum 7 days stock only in their godowns and shops. Rest of them confiscated and release to market. The people who engaged in speculation and hoarding will immediately release the goods to the market if the govt. remove import duty and reduce domestic taxes to the goods supplied through Sahakari Bhandars and other recognized govt. agencies. Railway must reduce the freight charges and ensure maximum availability of wagons/ goods train to supply essential commodities across the country and railway can play a pivotal role in controlling inflation. The rise in transportation and other taxes and frequent disruption in transport services are on of the cited in high inflation.

Of late, govt. must understand that opening up of Retail sector, essential goods and commodity market left to market forces is the great mistake on the part of Central Govt.

In cement, steel, chemical, pharmaceutical and oil sectors both in India and international market becomes monopolized and the biggest cartel decide in manipulating the market. Still govt. not ready and willing to control the above problem in effective manner.

In the above sector, govt. should provide tax holidays for both domestic and multinational companies to set up business in India. German cement manufacturers are pioneer in the cement manufacturing sector and will be ready and willing to invest in India, ‘if’ the govt. extend full support and fast project clearance done. In reality, govt. don’t want to displease the cement and steel cartel in India. The cement cartel will shaken up if govt. allow mass import of cement and essential goods to India to contain and reach inflation upto 4%.

When manufacturing sector showing more than 8% GDP growth, India like economy cannot ignore other sector like agriculture. Just free packages and big bail out not going to solve the agri-crisis. In some states, militant trade unionism, higher wages in some southern states, non-availability of agricultural workers, not allowing new technology and machineries in the name of labour protection and vested interest and non availability soft loan and timely assistance from bank and financial institutions are some of the prime reason which added the agri-crisis in India. This is also an added fact for higher inflation. Other major problem is high transportation cost including various taxes like toll tax, Octroi and restriction in goods movement through inter state is a one of the major culprits. A 5-6% GDP is good rather than the present higher GDP growth. When one sector grow, other sector suffer especially agri sector. That is the lesson we learnt after opening up of our economy.

If the govt. failed to address all this issue, instead of making a ‘polished act’ don’t reap any benefit and the ground reality not going to change. All sections of the society badly affect their monthly budget while their income also not arose. There is complete failure in governance, and law and order problem which affecting the performance of the govt. The bureaucracy and police force is not better controlled by UPA and UPA ruled states. There is lack of discipline and accountability.

Until now the govt. is clueless and don’t know what to do to tide over the price rise issue and I believe in the next election, it will be an election issue. UPA facing the similar problem what NDA faced 4 years before. UPA tried to waive off farmers loan which is not going to much benefit the UPA. The price rise is overshadowed and at present UPAs only advantage is disunited, infighting and strong opposition. UPA still training due to above fact and urgent control measures to be taken up instead of making a cosmetic act. If there is a will, there is a way. The clock is ticking. Act now.