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  • Category: General

    Cause of Rising PRICES

    Rising price is one of the big problems that our country as well as our state facing today.The prices are escalating following the devaluation of the rupee.In a short span of years, the prices have increased manifold.The price situation is worsening and it has taken place as a major national problem outstripping all other issues.
    The problem, on the face of it, may seem to be quite simple.But in fact, it is not.It is closely related to the welfare of the people.It owes much to the administrative efficiency of the Government.The last but not least important is the fact that the success of a Government depends largely on the behavior of prices in the country. The problem of rising prices has wide ramifications. It is the result of operation of a large number of causes.
    The present drawbacks and troubles are mainly the result of a derailed development programme based on adhocism and drift. While concentrating on food production, the Government appears to have overlooked the obvious fact that in years of agricultural prosperity,demand of cloth,edible oils,vegetables,fish,meat and milk,etc.,is bound to increase. These are precisely food items,which have been showing maximum price increase. Another cause for the rapid price rise is the increase in population. This has further accentuated inflation. The production of goods is expanding slowly. The current consumption of goods is increasing because of the population explosion,resulted with their price rise.
    The repercussion of inflation are dangerous. During inflation there takes place a widening of profit gap because the demand is in excess of the supply. The scarcity of goods provides opportunity for all sorts of evil practice to thrive. The chances of profit are fast increasing and there is a great market for goods. Therefore,there takes place stock piling of goods or what is popularly known as hoarding. Hoarding further accelerates the pace of price. The home cost of goods increases. The foreign buyers,therefore,will not be attracted yo buy such goods. The result is that foreign market is lost and much foreign exchange is missed.The value of rupee falls.
    In a developing country,prices are bound to increase. There can be no absolute price stability. But limits should be defined. Price increase must be matched by increase in national income in real time.

  • #4063
    It is a fact that rising price of almost everything is becoming the major problem these days. Meeting both ends has become a real problem for the ordinary citizen. There are several reasons for this phenomenon. Production to the marketing a commodity passes through several stages. Every stage adds to the commodity price. the ultimate buyer has to pay every person engaged in the process.

    Earlier it was directly from the producer to the consumer. Naturally a nominal profit taken by the producer need be be paid by the customer. But now he is paying to several middle persons.

    Also the present tendency to take more profit by the agents. Except the agricultural producers almost all manufacturers take very high profit for their products (perhaps, with specific reasons). Transportation cost is a villain in most of the cases.

    A detailed study of all aspects related to price rise is needed in order to contain this. The present attitude of giving more salary to the employed to meet the price rise and the consequent additional rise in price will never solve the issue. It works only as a vicious circle.

    Gold Member, SPK

  • #4075
    The price rise is a major concern for all. However, the effect of the same is mainly confined to the lower and upper middle class.

    The rich class do not have problem of the price rise as they pass on the burden to the market as they are mostly in business or trade. The poor class's mani need is food. They get the main food items like the pulses at a very cheap rate of Rs 2/- or even free in some states. The balance amount of their income is available of r their daily necessitates. Their necessities are also limited. Any way if the prices are stabilised, this group can improve their living standard.

    If we observe over a period of 2 - 3 years we can observe that the prices rise on the once hand and on the other we find that the farmers in trouble of not getting enough support prices for their produce. This anomaly is because of the middlemen hording the commodities and release the same in such a way that they can make huge profits. This profit is accumulated as black money and is ploughed back into the market to further horde the commodities. It is a vicious circle.

    Who is to regulate the supply and demand? The Government of course. They are not in a position as they have to do things in such a way to get elected the next time. They have to adopt a strategy to retain, if not increase the vote base, and to counter the opposition's strategy. In between this there is the position of dependence on regional parties for support as no single party gets majority. This dependence make it difficult for the major parties to take any firm steps.

    Even the public organisations like the anti corruption movement of Anna Hazare is only a fooling program of the public. The real issue is a corruption free Governance. Is it possible by having one more institution like the Lok pal to eliminate the corruption? Corruption is a mental attitude of each person and this becomes the collective as far as the nation is concerned. The Lok pal or any other new institution will be like the existing institutions like the C A G, C V C, C B I, Enforcement Directorate etc. Immediately for a few months it may be effective. After that this also will be like its predecessors. Then another Hazare has to come and fool the public to contain their resentment.

    What is really required is correction of the mental attitude. What is the way for the change?

    One way is for the spiritual organisations to co-ordinate with each other and have a common program to arise the attitude of followers. Since around 95% of the spiritual institutions suffer from the same attitudinal deficiency, they cannot do any service to the nation.

    The other way is the communist method. This method in theory, is to produce for the nation and distribute according to need. This method is most impractical as it involves a dictatorial way of enforcement. No human being wants to be dictated. If dictation was tried, it may succeed for a very short time but it will be overthrown at the earliest available opportunity. We have the examples of USSR, East European countries and China. In China it is still prevalent in a truncated form.

    The what is the remedy? The remedy lies in each of us. We should, individually stick to the principles and try to persuade by discussions with our family members, neighbors and friends so that it become a different type of mass movement. Once we do this irrespective of what happens around us, this movement will become strong as majority of the people of the population is good. Once the majority become effectively good, the persons standing elections will be good and the government elected will be good and the governance will be good and the condition in the country will be good. To me this is the only way out.

    With Regards
    Ramanathan A R

  • #4076
    hai althaf you pointed out a fact.Today we all are facing this problem.Now this is a national issue

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