CPM breathing down govt's neck on inflation

NEW DELHI: As inflation soared to 6.73%, the government came under fiercer attack from the CPM. Adopting an “it’s-all-government’s-fault” approach, the Marxist party is apprehensive that the price rise would adversely impact poll fortunes of the Congress in Punjab and Uttarakhand.

Party general secretary Prakash Karat, in a hard-hitting editorial in the party mouthpiece ‘People’s Democracy’, said the “die-hard neo-liberal policy makers in the UPA government would have to come to grips with reality soon”.

Mr Karat rejected all arguments given by the government for the sharp price rise and blamed it on “wrong policies” and “mismanagement”. Seeking a revision of agricultural policies, he reiterated the Left’s demand to curb futures trading of essential commodities, boost foodgrains production, strengthen PDS, tighten the Essential Commodities Act and crack down on hoarding.

“Despite all arguments, the government cannot escape the responsibility for its gross failure. The rising inflation and price rise is a direct result of the policies of the government. The argument that inflation is a consequence of rapid growth also does not stand scrutiny.

The Chinese economy has been registering rapid growth for three decades. Inflation is below 2% in China,” he said. Mr Karat recalled that the government had claimed price rise was seasonal, then described it as a natural consequence of rapid economic growth and more recently, cited supply constraints as the main cause.

Alleging that the government had failed to address the basic causes for the overall slowdown in agricultural production, Mr Karat said a major reason for rising prices was the UPA’s “refusal” to reverse the steps taken by the Vajpayee regime in 2003 to lift all restrictions on futures trading in agricultural commodities.

He pointed out that in the past three years, there was a huge increase of over 600% in the total value of commodities traded in the futures market and it was not farmers who benefited from futures trading, but a handful of big companies and traders.

“Whether it be wheat, dal, sugar or onions, big traders are profiting by speculative trading, and large mass of small and marginal farmers and the consumers are being fleeced,” he said.

The parliamentary standing committee of food, consumer affairs and public distribution has proposed a ban on futures trading in essential agricultural commodities. “Mesmerised by its own talk of having achieved 9% growth in GDP, the UPA government is now facing the anger and discontent of the people due to price rise,” Mr Karat said.