Thaindian News

Bangalore, Jan 31 (IANS) Bharatiya Janata Party president Nitin Gadkari Sunday blamed the “wrong economic policies” of the UPA government for the skyrocketing prices and double-digit food inflation.
“Economist Prime Minister Manmohan Singh says GDP to grow double-digit soon but food inflation is growing at high double-digit (17 percent to 20 percent),” Gadkari told reporters here.

He demanded that essential commodities be immediately taken out of commodities exchange.

“The government should take out 17 essential commodities permanently off the commodities exchange where speculation and manipulation is resulting in food prices soaring,” said Gadkari on his first visit to the state after becoming BJP president.

The BJP chief blamed the government’s export-import policy for the dramatic rise in sugar prices. Export and transport subsidy given to sugar mills was responsible for the steep fall in sugar buffer stock which was 4.8 million tonnes in 2008, he asserted.

“India exported 4.8 million tonnes of sugar in 2008-2009 at Rs.20 a kg, after paying the farmers at the rate of Rs.12.5 a kg. Now the country is importing raw sugar at Rs.36 a kg,” he said.

Similarly 10 million tonnes of rice were exported at Rs.18 to Rs.20 a kg after paying the farmers Rs.8 to Rs.10 a kg. Now rice costs Rs.32 a kg, Gadkari said.

“The UPA government’s skewed economic policies were beneficial to MNCs, corporates and big companies whose profits have multiplied by hundreds of percentage,” the BJP president said.

Demanding immediate introduction of food security for all bill in parliament, creation of buffer stock of wheat, rice, pulses and edible oils, Gadkari assured his party’s full support to the government in this regard.

He called for stringent action against profiteering, hoarding and black marketing in essential commodities.

Noting that “since November 2009 prices of 17 essential commodities, especially rice, wheat, pulses, sugar and edible oils have doubled,” Gadkari said 78 percent of the country’s population was spending about 80 percent of monthly income on food articles alone.

Inflation rate that was negative in August 2009 (minus one percent) has shot up to 7.8 percent now and the country was heading again for double-digit inflation by March 2010, he said.