Trinamool, DMK frown on Parikh proposals

NEW DELHI: The Trinamool Congress and DMK on Thursday opposed Prime Minister Manmohan Singh’s proposal to increase prices of petroleum products to overcome troubles confronting an economy soaked in oil subsides.

A report submitted by an expert group, headed by Mr Kirit Parikh, on a sustainable system of pricing of petroleum products had suggested significant hike in the prices of petro products. That the report has become an occasion for posturing for the two parties which lay too much premium on instant populism was evident when they amplified their reservations in public.

Railway Minister Mamata Banerjee told reporters in Kolkata that a fuel price hike will drive up the cost of food and other essentials — and this at a time when food inflation has touched 17.56 per cent and economists expect prices to rise further.

"There has been an abnormal increase in the prices of essential commodities and I am against a fresh increase in the prices of petroleum products, especially LPG," Ms Banerjee said. She also said there was no need to implement all the recommendations of the Parikh panel.

That the minister is out of sync with the economic paradigm that the prime minister wants to establish was clear when she said high subsidy was not a bad idea. "Subsidised prices are alright. Subsidy is given by governments in developing countries keeping the interest of common people in mind," she said.

The Trinamool leader can be expected to harden her stand against hiking prices of petroleum products as her political competitor, CPM, has demanded the rejection of the Parikh recommendations. Trinamool is certain to be wary of giving the Left an opportunity to exploit the discontent of the people over the issue in West Bengal.

On its part, DMK said it cannot be expected to be party to any rise in the prices of petro goods. "As far as we know, the government has not said anything about hiking prices. But if such a proposal is made, we will oppose it since it affects the common man," DMK spokesman TKS Elangovan said. He also said Tamil Nadu Deputy Chief Minister MK Stalin, who will be attending the chief minister’s conference on Saturday, will place the party’s views if the Prime Minister brings up the matter.

Congress, which appears to have anticipated adverse reaction from within and outside, had on Wednesday said the government will keep in mind concerns of the aam admi while taking a decision on the Parikh report. As expected, the entire Opposition said they will agitate against the government if it went ahead with the Parikh proposals.

All these do not augur well for the government as it disturbs the traditional template of governance — the usual pattern of a five-year term in office is to take tough decisions in the beginning and keep populism for later.