Set WPI right to tackle inflation: CPM tells govt

NEW DELHI: The CPM, which stepped up its attack on the government, said the Centre will not be able to tackle rising inflation when the tool to assess the problem, wholesale price index, is ���faulty���.

���The WPI is not a true reflection of the burden put on the people through the rise in prices of essential commodities. It is a misnomer to use it as an index for measuring inflation,��� CPM leader Sitaram Yechury told reporters here.

Quoting the clich��, lies, damned lies and statistics, he said the weightage of the basket of food items to calculate WPI was 22% as against that of steel products which was 25%. ���So, only about one-fifth of the fluctuation in food prices will find reflection in WPI,��� he said and asserted that there has been no downward trend in prices of essential commodities.

The CPM leader charged the government with ���skirting basic issues��� during the reply to the debate on price rise in Parliament. Mr Yechury said these basic issues were withdrawing 25 essential items from futures trading, restoring cuts in grain allocations to states, restructuring of taxes on petro products and implementing the Essential Commodities Act (has to be done by state governments) to check hoarding and black-marketing.

The Left said the large-scale speculation in futures trading in grain has been the main factor responsible for rise in prices. ���The only way to insulate ourselves from the international speculation is to reverse the process of liberalisation in commodity trade and prohibit futures trading in essential commodities. In the last year of its government, the UPA must at least now discharge its responsibilities towards securing a decent livelihood for the aam aadmi,��� an article in the CPM mouthpiece ���People���s Democracy��� said.

Pointing out that the volume of futures trading at any point of time is many times higher than the actual levels of production, the CPM pointed out that while the domestic availability of arhar dal was 15 lakh tonnes, the volume of futures trade in the year was 137.39 lakh tonnes. ���Same is the situation with other commodities,��� it said.

The CPI, which held a day-long protest against price rise during the Left-UNPA agitation week, asked the government why it could not subsidise grain if the Congress government in Andhra Pradesh could give rice for Rs 2 per kg.

���If the finance minister claims the government can suffer revenue loss to address price rise, let him do so,��� CPI general secretary A B Bardhan said addressing a rally in the Capital. He said the government was skirting the Left���s demands. ���The UPA should not take its throne for granted. It seems to be floundering,��� Mr Bardhan said.