Ashok K.Koul (Lalpuri)
It is a matter of common knowledge that the “inflation”-Price rise takes place when the aggregate demand of a commodity runs ahead of its aggregate supply. The same position is prevailing not in J&K but throughout the length and breadth of our country for the past couple of decades. Thus, the demand of the commodities is running ahead of the supply and the natural consequence is the price rise. Since we have been expriencing the same for the past so many years and as such it is turned up inftionary and the nation is witnessing staggering price hike of essential food items viz. atta (flour), sugar, vegetables, rice, fruits etc. and other commodities/ goods with flood of inflation at our all time of 19 precent in the last ten years leaving the common-poor man high and dry. On this issue the parliament faced adjournment as the entire opposition was agitated on this issue of price rise of the essential commodities. Besides every Tom, Dick and Hari talks day in and day out about Inflation price-rise . But let us see and know its causes and cures to save the Nation-common man from the consequences of inflation to a great exten. To my mind the following are the main causes responsible for inflation -price rise.
Increase in Population:- we know that our population is increasing at a galloping speed and we are adding approximately 13 million people annually to our population which is equal to the entire population of USSR. Therfore, it is but natural that when such huge addition is being made to the population and the aggregate demand of goods increase automatically, hence the rise in prices- inflation takes place. The main cure for it is ‘population control’-‘Hum Do Hamaray Do’ and increase in the production.
Low Agriculture production:- Moreover, the performance of the agriculture sector is the backbone of the Indian Economy because more than 70% of the people depend on agriculture. It has not been upto the mark as the agriculture production remained very low for many reasons. This also needs proper attention of the Govt. to increase the agricultural production to meet the required demand. In addition to it, the sericulture and hoticulture sector needs proper attention of the central and the state Govt.(s).
Defective priorities in Plans:- The defective priorities in various plans have led to less production and it goes without saying that ‘right priorities’ will work wonder and can produce maximum product but when the priorities are defective it puts the whole system out of gear naturally affects the production. Therefore, the need of the hour is to prioritiese the right plans by right for the right and hence good results, yields and the price control.
Long gestation period of plans:- Since 50’s we have embarked upon development of plans and public expenditure has beeen mounting tremendously. Besides, the schemes on which this expenditure is spent have long gestation periods. It is therefore, but natural that when we excute these schemes the demands is at once generated because the workers who work on these projects demand good i.g. money that they get as their wages from these projects. Hences, the generated and the prices go up. This also needs to be looked into by the top. Experienced axperts and planners etc. in order to get rid of the rise in prices.
Strikes, Bandhs, Lockouts, Hoardings And Go Slow etc.:- The most important cause of price rise in India particularly in our J&K state is that the production of various commodities-goods does not increase at a desired rate beacuase of strikes, Bandhs, lockouts, hoading, go slow, black marketing’ Hartals’ non-displaying of rate lists and many such other things. The result is that the labour is on rest and many labour days there is loss of production and hence there is price rise and loss to the economy as well. This all needs proper attention of the Govt.
The central and the State Govt(s) have been adopting various measures to controll and regulate the price rise – inflation but not so seriously as it is needed. To my mind the following measures must be taken by the central and the state Govt(s).
The central Govt. must set up a net work of fair prices shops throughout the country. The Govt.(s) must introduce the system of rationing in the urban areas and the rice, atta, sugar and other items of daily use must be available at fixed price to the ration card holders-consumer making the PDS-pubic Distrbution System more impressive and effective in both the rural and the urban areas. The govt must also control the prices of the essential commodities and the sale of these goods to the public in rural as well as urban areas must be controlled and restricted so that every one including the poor will be in a postion to buy these commodities easily at low rate.
The Govt(s) must check black marketting, hoarding, artificial shortage etc which creates hardships to the poor people in particular and the rich in general.
The people living below the poverty line (BPL) should be given more and some specific concession.
The departments like weights and measurements, munciplities, muncipal corporation, town area committee, police and excise department etc should be given more powers to check and control the prices and to take stern action under relevant laws, rules and regulations against those found guilty in black marketting, cheating, duplicacy, adultration,artificial shortage, hoarding and charging high prices etc besides taking flood control measures-FCM(s).
The Govt(s) must take steps to increase the agricultural and industrial production in order to increase the supply of materials, goods so as to meet the increase in demand as the final solution to the problem of inflation-prioce rise is nothing but to increase the supply of goods and commodities.
Thus to conclude, I am of the opinion that if we are in a position to revolutionize the agricultural and the industrial sectors the problem of inflation-price rise and the unemployment could be overcome to a great extent for the greater good of all. Hope, the needful is done in the best interest of the suffering consumers-citizen by the authorities concerend.
(The author is lecturer economics Govt HSS Lamberi Rajouri)
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