{"id":27578,"date":"2007-05-17T00:00:00","date_gmt":"2007-05-16T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/further-discussion-on-price-rise-raised-by-shri-prabodh-panda-on-on-17-may-2007"},"modified":"2017-04-13T22:41:44","modified_gmt":"2017-04-13T17:11:44","slug":"further-discussion-on-price-rise-raised-by-shri-prabodh-panda-on-on-17-may-2007","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/further-discussion-on-price-rise-raised-by-shri-prabodh-panda-on-on-17-may-2007","title":{"rendered":"Further Discussion On Price Rise Raised By Shri Prabodh Panda On &#8230; on 17 May, 2007"},"content":{"rendered":"<div class=\"docsource_main\">Lok Sabha Debates<\/div>\n<div class=\"doc_title\">Further Discussion On Price Rise Raised By Shri Prabodh Panda On &#8230; on 17 May, 2007<\/div>\n<\/p>\n<pre><\/pre>\n<p>                                          &gt; <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=Title\">Title<\/a>:  Further discussion on price rise raised by Shri Prabodh Panda on 15.05.2007 (Concluded).   <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%B6%E0%A5%8D%E0%A4%B0%E0%A5%80%20%E0%A4%85%E0%A4%A8%E0%A4%82%E0%A4%A4%20%E0%A4%97%E0%A4%82%E0%A4%97%E0%A4%BE%E0%A4%B0%E0%A4%BE%E0%A4%AE%20%E0%A4%97%E0%A5%80%E0%A4%A4%E0%A5%87%20\">\u0936\u094d\u0930\u0940 \u0905\u0928\u0902\u0924 \u0917\u0902\u0917\u093e\u0930\u093e\u092e \u0917\u0940\u0924\u0947 <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%B0%E0%A4%A4%E0%A5%8D%E0%A4%A8%E0%A4%BE%E0%A4%97%E0%A4%BF%E0%A4%B0%E0%A4%BF\">\u0930\u0924\u094d\u0928\u093e\u0917\u093f\u0930\u093f<\/a>):\u092e\u0939\u094b\u0926\u092f, \u092e\u0939\u0902\u0917\u093e\u0908 \u092a\u0930 \u092e\u0947\u0930\u093e \u092d\u093e\u0937\u0923 \u0905\u0927\u0942\u0930\u093e \u0930\u0939 \u0917\u092f\u093e \u0925\u093e\u0964 \u091c\u0939\u093e\u0902 \u0938\u0947 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\u0915\u0940 \u092f\u094b\u091c\u0928\u093e \u0915\u0940 \u092f\u0939\u093e\u0902 \u0918\u094b\u0937\u0923\u093e \u0915\u0930\u0947\u00a0 \u0924\u092d\u0940 \u0939\u092e \u0909\u0928\u094d\u0939\u0947\u0902 \u092e\u0939\u0902\u0917\u093e\u0908 \u0938\u0947 \u0930\u093e\u0939\u0924 \u0926\u093f\u0932\u093e \u0938\u0915\u0924\u0947 \u0939\u0948\u0902 \u0905\u0928\u094d\u092f\u0925\u093e \u0928\u093e\u0930\u0947\u092c\u093e\u091c\u0940 \u0915\u0947 \u0905\u0932\u093e\u0935\u093e \u092e\u0939\u0902\u0917\u093e\u0908 \u092a\u0930 \u0930\u094b\u0915 \u0932\u0917\u093e\u0928\u093e \u0915\u093f\u0938\u0940 \u0915\u0947 \u0939\u093e\u0925 \u0928\u0939\u0940\u0902 \u0939\u0948\u0964\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0  <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRIMATI%20ARCHANA%20NAYAK%20\">SHRIMATI ARCHANA NAYAK <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=KENDRAPARA\">KENDRAPARA<\/a>): Sir, I may be permitted to speak in Oriya.\n<\/p>\n<p>*Mr. Chairman, Sir,\u00a0 \u2018Price Rise\u2019 is a problem of the common man.\u00a0 The common man expects the Government to control the prices of essential commodities and to protect his interest.\u00a0 But the escalation of prices today has hit him hard.\u00a0 And the worst affected are the poor, the farming community, the labourers and the workers who are in the unorganized sector. These are the people who live life on very uncertain terms. They have nothing to fall back upon.\u00a0 They face natural calamities, an unregulated market system, the loan-burden of the local money-lender and several other problems.\u00a0 Out of desperation they commit suicide.\u00a0 They have no social security measure to protect them.\u00a0 The Government claims to have taken steps to give social security to the workers in the unorganized sector.\u00a0 But the tangible impact in yet to be seen.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The Government takes pride by claiming that the economic growth rate is very satisfactory.\u00a0 Both our Prime Minister and Finance Minister are learned economists. Even then they fail to see the ground realities.\u00a0 The economic growth has resulted in making the rich more richer and the millions below the poverty line poorer.\u00a0 We need to do self-introspection as to why even after 60 years of independence starvation deaths still take place, bounded labourers still toil hard and helpless farmers still commit suicide.\u00a0Prices of essential commodities are sky-rocketing, but the primary producers of these commodities are not getting their due.\u00a0 The unregulated market system has failed to give the farmers any sense of security.\u00a0The market today is being controlled by a small minority.\u00a0 That is why the farmer is not even getting back his input cost in terms of investment.\u00a0The   <\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0  <\/p>\n<p>*\u00a0English translation of the speech originally delivered in Oriya.\n<\/p>\n<p>\u00a0  <\/p>\n<p>Government takes credit that it has flooded the economy with loan-facilities, for the farmers.\u00a0 But the reality is, when a farmer approaches a nationalized bank\u00a0 for loan, he gets nothing but harassment.\u00a0 He gets frightened by all those complicated terms and conditions of the bank.\u00a0 He then runs to the local money-lender to borrow money on a hefty interest rate.\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Agriculture in our country depends mostly on the vagaries of nature.\u00a0Sometimes nature plays havoc.\u00a0Natural calamities destroy crops and the quantum of return gets adversely affected.\u00a0 Farmer fails to pay back the loan and the burden pushes him to commit suicide. \u00a0In this context the crop insurance provision should come to the rescue of the hapless farmer.\u00a0 But that does not happen.\u00a0The reason being administrative bottlenecks.\u00a0 The administrative unit to disperse insurance amount till now remains the block.\u00a0 Many a times political parties have demanded in this House that Panchayats and not blocks should be taken as the unit.\u00a0 But that has not happened.\u00a0 The Government is yet to come out with a concrete policy in this regard.\u00a0 For many agricultural products the Government has not fixed a price.\u00a0 I would like to cite the example of \u2018Turmeric\u2019.\u00a0 A few days ago turmeric producers had sat on a \u2018Dharna\u2019 at\u00a0Jantar Mantar.\u00a0 In the absence of a pricing policy the turmeric cultivators are selling turmeric at Rs. 20 per Kg. to the middlemen.\u00a0 Whereas we, the consumers are buying the attractively packaged turmeric at Rs. 100\/- per Kg.\u00a0 So you can well guess how severely the farmer\u2019s interest is affected.\u00a0 The Government should announce a minimum support price for turmeric and there should be more number of Government depots to sell the produce at a fixed price.\u00a0 In the absence of a fixed price the farmer is indulging in distress sale.\u00a0The middlemen are snatching away the profits of the farmers and controlling the markets.\u00a0 The Government has no authority or control over these market forces.\u00a0 Since the farmer is not getting his expected return from agriculture, he is giving up his age-old profession. As a result, quantum of production is on a decline.\u00a0 Once upon a time we as a nation were self-sufficient in foodgrains.\u00a0 Now we are importing the same from outside.\u00a0 In the name of industrialization cultivable lands are being handed over to private players. Recently the Government has given permission to private companies to open retail chain of stores on agricultural lands.\u00a0Gradually our market will go to the hands of the Multi National Corporations and the Government will have no control over them.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The impact of price-rise can be known from the recently held Assembly election results of different states.\u00a0 The debacle of the ruling elite in this election is certainly due to price-rise.\u00a0 Even the Government has acknowledged the fact.\u00a0 Unless something is done quickly the Government will bear the consequences.\u00a0Thus I urge the Government to be cautious and mend its ways.\u00a0 The price of essential goods should be controlled.\u00a0 The PDS system should be more efficient and people-oriented.\u00a0 The market should be freed from the clutches of black-marketeers and profit-seeking unscrupulous elements.\u00a0 The people should get protection and their interest should be the foremost priority of the Government.\n<\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0   <\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   <\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0  <\/p>\n<p> 15.00 hrs.  <\/p>\n<p>\u0936\u094d\u0930\u0940 \u0930\u093e\u092e \u0915\u0943\u092a\u093e\u0932 \u092f\u093e\u0926\u0935 (<a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%AA%E0%A4%9F%E0%A4%A8%E0%A4%BE%29%C2%A0%20\">\u092a\u091f\u0928\u093e)\u00a0 <\/a>: \u0938\u092d\u093e\u092a\u0924\u093f \u092e\u0939\u094b\u0926\u092f, \u092e\u0948\u0902 \u0906\u092a\u0915\u0947 \u092a\u094d\u0930\u0924\u093f \u0906\u092d\u093e\u0930 \u0935\u094d\u092f\u0915\u094d\u0924 \u0915\u0930\u0924\u093e \u0939\u0942\u0902 \u0915\u093f \u0906\u092a\u0928\u0947 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\u0935\u094d\u092f\u0935\u0927\u093e\u0928)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%85%E0%A4%A7%E0%A5%8D%E0%A4%AF%E0%A4%95%E0%A5%8D%E0%A4%B7%20%E0%A4%AE%E0%A4%B9%E0%A5%8B%E0%A4%A6%E0%A4%AF%20\">\u0905\u0927\u094d\u092f\u0915\u094d\u0937 \u092e\u0939\u094b\u0926\u092f <\/a>: \u00a0\u0915\u094d\u092f\u093e \u091a\u0915\u094d\u0915\u093e \u091c\u093e\u092e \u0915\u0930\u0928\u0947 \u0938\u0947 \u092d\u093e\u0935 \u0915\u092e \u0939\u094b\u0917\u093e?\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%B6%E0%A5%8D%E0%A4%B0%E0%A5%80%20%E0%A4%B0%E0%A4%BE%E0%A4%AE%20%E0%A4%95%E0%A5%83%E0%A4%AA%E0%A4%BE%E0%A4%B2%20%E0%A4%AF%E0%A4%BE%E0%A4%A6%E0%A4%B5%C2%A0%20\">\u0936\u094d\u0930\u0940 \u0930\u093e\u092e \u0915\u0943\u092a\u093e\u0932 \u092f\u093e\u0926\u0935\u00a0 <\/a>: \u0905\u0927\u094d\u092f\u0915\u094d\u0937 \u092e\u0939\u094b\u0926\u092f, \u0939\u092e\u093e\u0930\u0947 \u092a\u093e\u0938 \u091a\u0915\u094d\u0915\u093e \u091c\u093e\u092e 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\u091a\u093e\u0939\u093f\u092f\u0947\u0964\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0   <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=THE%20MINISTER%20OF%20FINANCE%20\">THE MINISTER OF FINANCE <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>): Mr. Speaker, Sir, we are discussing a sensitive and important subject.\u00a0 On the side of the treasury benches as well as on the side of the opposition, there is a common concern about price rise, which we call inflation, and how it affects the common man.\u00a0 Like my good friend Shri Ram Kirpal Yadav, who spoke last mentioned, this debate occurs from time to time, in fact in every session.\u00a0 Price rise occurs because of a variety of factors.\u00a0 In fact I saw some smiling faces from the other side when Shri Yadav compared the prices of today with the prices that existed three years ago.\u00a0 Likewise, we can compare the prices that existed three years ago with the prices that existed nine years ago; and we can compare prices that existed nine years ago with the prices that existed ninety years ago.[MSOffice33]\u00a0  <\/p>\n<p>\u00a0[a34]\u00a0 What we must understand is, I say with respect, not trying to tell anyone what he or she does not know that prices rise because incomes rise, because wages rise and because demand rises. \u2026 (Interruptions) Please listen to me, I may be right or I may be wrong. Prices of commodities, prices of gold, prices of wheat, prices of rice, say 15 years ago, are not the same as today.\u00a0 What we are trying to moderate is the increase in the rate of the rise which is what we measure as inflation.\u00a0\u00a0 In no country the prices do not rise.\u00a0 Even in most developed countries, prices rise by two per cent.\u00a0 The Maastrich limit is that prices should not rise beyond three per cent a year. The Reserve Bank of India says in India, given our economic situations, prices should not rise say beyond 4.5 per cent to 5 per cent a year.\u00a0 The Government has said and I say this &#8211; it is our goal to keep the inflation to around 4 per cent to 4.5 per cent a year.\u00a0 So prices will rise.\u00a0 What we are collectively debating is as to how to moderate the price rise, keep it within limits so that as wages and incomes rise, people will not be burdened with the price rise.\u00a0 That is the core of the issue before us and, therefore, I want to take a few minutes to explain why there has been a spurt in prices today and why is it different from the spurt in prices say four or five years ago and what measures the Government is taking to moderate the price rise.\u00a0\u00a0\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, while the WPI which is the usual measure to measure inflation is around 5.6 per cent today, two weeks ago it was close to 6.7 per cent.\u00a0 There has been a moderation in the last two weeks.\u00a0 It is too early to say whether that moderation will continue, but I am hopeful that it will continue. The primary reason behind this inflation rate is what we call the Primary Articles Group.\u00a0 The Primary Articles Group consists of food articles as well as other primary non-food articles.\u00a0 In this Group, price rise has been 10.84 per cent on April 28, 2007.\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, I want to take this opportunity to briefly list the causes behind this and I also wish to place the present inflation in context.\u00a0 Broadly speaking, there are five reasons behind the present inflation.\u00a0 Firstly, the world-wide increase in the commodity prices, particularly crude oil.\u00a0 Now crude oil this morning was at 67 dollar a barrel.\u00a0 You will recall that some months ago, it moderated to about 50 dollar a barrel.\u00a0 The Government reduced prices twice by two rupees and one rupee a litre on petrol and diesel.\u00a0 But crude oil prices have climbed back to 67 dollars a barrel.\u00a0 The metal prices have hardened year on year by about 57 per cent in the year 2006.\u00a0 In recent times, in no calendar year has metal prices increased by 57 per cent.\u00a0 In India, the metal prices have increased by 11 per cent as on April 28, 2007.\u00a0 Let me illustrate with a few examples.\u00a0 The international price of the Indian basket of crude oil increased from 47 dollars US per barrel in May 2005 to a peak of 71.29 dollars in July, 2006.\u00a0 It came down to about 52 dollar a barrel in January, but since then it is climbed back to 67 dollars a barrel.\u00a0 The price of US red hard wheat which was 152 dollars per metric tonne in calendar 2005, went up to 212 dollars per barrel in October, 2006.\u00a0 Similarly, the price of palm oil which we import in large quantities, per metric tonne went up from 422 dollars in 2005 to 707 dollars in April, 2007.\n<\/p>\n<p>The prices of copper per metric tonne went up from $ 2866 in the calendar year 2004 to $ 7766 in April, 2007. There is a three-fold increase. Iron ore during the same period went up from $ 38 to $ 77. In metals, there was a large increase in prices of lead, nickel, tin and virtually every metal. All this clearly impacts the Indian Industry, the Indian Manufacturing and all the downstream activities. We have no control over these prices. Some metals are produced in India. But most of the metals, and a large quantity of metals, are imported by the Indian Industry. We import palm oil. We import crude oil.\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>:\u00a0What is this? This is very improper. This is very unfair. The Minister is replying to a very important debate. If he is interrupted like this, how will he reply? If you have anything to say, you can say later on. I cannot allow this. This is very unfair.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>:\u00a0He cannot go on replying to your running commentaries.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>:\u00a0\u00a0All of you are very knowledgeable.\u00a0I am sure, you have made your contribution. Let him reply. You are passing a judgment on every sentence. This is not the way of conducting a debate.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>:\u00a0 I am trying to point out why there is price rise. \u2026 (Interruptions) I would ask the hon. Members to kindly extend the courtesy of allowing me to give you the reasons behind this price rise.\n<\/p>\n<p>\u00a0I will come to wheat, paddy and sugar-cane in a moment. At the moment, I am talking about the primary articles group which is triggering inflation. The primary articles group is growing by over 10 per cent. These prices have an impact upon the Indian Industry, have an impact upon the Indian consumption because palm oil is one of the primary articles. Wheat prices are decided by wheat prices the world over. Wheat prices have hardened in India as he has just now pointed out. The world over, wheat prices are hardening.\u00a0 The farmers in India expect a much higher price when they find that international prices are growing, international prices are increasing. Palm oil does impact prices here because edible oil prices the world over harden. It has impact upon the farmer here. He expects a higher price. The point is that we are talking about primary articles group in which all articles have showed a very high price the world over thanks to a variety of reasons. The main reason is that there is a huge demand in some countries, especially China and India.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I come to the second reason. The second reason is the supply-demand mismatch. I have said this before. I want to say this again. It has nothing to do with last year or the last two years. Look at what has happened. The supply-demand mismatch in essential articles started with sugar. I am coming to the very points that you want to know. It started in the middle of 2005.\u2026 (Interruptions) It started in the end of 2005 with sugar. When the new crop of sugar-cane came and sugar prices moderated, sugar prices have moderated by almost Rs.3 to Rs. 4 a kilo.\u00a0 It extended to wheat. Now it has extended to pulses. We must understand why the supply-demand mismatch is there and for how long\u00a0 the supply-demand mismatch\u00a0 will be there.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The area under food-grains has stagnated between 120 million hectares and 125 million hectares for the last ten years.\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Unless he yields, I cannot allow you. I am sorry. I cannot allow you. Nothing is to be recorded.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>:\u00a0Shri Prabhunath Singh, I beg of you to sit down. This is not the way of doing things.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: What are you doing?\u00a0 I do not know. Do you want to dictate how the Minister should reply? Then, what are you doing? This is very unfortunate. I can only say it is very unfortunate.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p> \u00a0  <\/p>\n<p>* Not recorded  <\/p>\n<p>\u00a0  <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: In this important forum, a very important issue is being discussed. You are not allowing the Minister to reply.\n<\/p>\n<p>(Interruptions) *\u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>:\u00a0Nothing is heard by anybody in this world.[R35]\u00a0  <\/p>\n<p>I am appealing to all the leaders to control their Members. A Minister is replying to a debate on a very important matter concerning the common people and you are not listening to him. Is this the way for the House to function? I will not allow this.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: I am sorry, I cannot allow this. Please do not record anything.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: If you do not want to hear him, I will conclude the debate.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20RAJIV%20RANJAN%20SINGH%20%E2%80%98LALAN%E2%80%99%20\">SHRI RAJIV RANJAN SINGH \u2018LALAN\u2019 <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=BEGUSARAI\">BEGUSARAI<\/a>): He is defending price rise. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: What are you talking?\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, if I give the reasons why there is price rise, they are saying I am justifying price rise. Let them understand what I am saying. They wanted to know why there is price rise. I am trying to tell then why there is price rise and what steps we are taking to control it. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: I find that Members are not willing to listen to the Minister. This has become a disease with us.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: If he yields I will allow. You know how parliamentary debate is conducted.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p> \u00a0  <\/p>\n<p>* Not recorded  <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%B6%E0%A5%8D%E0%A4%B0%E0%A5%80%20%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A4%AD%E0%A5%81%E0%A4%A8%E0%A4%BE%E0%A4%A5%20%E0%A4%B8%E0%A4%BF%E0%A4%82%E0%A4%B9%20\">\u0936\u094d\u0930\u0940 \u092a\u094d\u0930\u092d\u0941\u0928\u093e\u0925 \u0938\u093f\u0902\u0939 <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%AE%E0%A4%B9%E0%A4%BE%E0%A4%B0%E0%A4%BE%E0%A4%9C%E0%A4%97%E0%A4%82%E0%A4%9C%2C%20%E0%A4%AC%E0%A4%BF%E0%A4%B9%E0%A4%BE%E0%A4%B0\">\u092e\u0939\u093e\u0930\u093e\u091c\u0917\u0902\u091c, \u092c\u093f\u0939\u093e\u0930<\/a>): \u0905\u0927\u094d\u092f\u0915\u094d\u0937 \u092e\u0939\u094b\u0926\u092f, \u092e\u093e\u0928\u0928\u0940\u092f \u092e\u0902\u0924\u094d\u0930\u0940 \u091c\u0940 \u0915\u0947 \u0907\u0938 \u092a\u094d\u0930\u0915\u093e\u0930 \u0915\u0947 \u0909\u0924\u094d\u0924\u0930 \u0938\u0947 \u0924\u094b \u092a\u094d\u0930\u093e\u0907\u0938 \u0930\u093e\u0907\u091c \u0915\u094b \u0914\u0930 \u092c\u0922\u093c\u093e\u0935\u093e \u092e\u093f\u0932\u0947\u0917\u093e\u0964 \u0907\u0938\u0932\u093f\u090f \u0939\u092e \u0932\u094b\u0917 \u0938\u0926\u0928 \u0938\u0947 \u092c\u0939\u093f\u0930\u094d\u0917\u092e\u0928 \u0915\u0930\u0924\u0947 \u0939\u0948\u0902\u0964\n<\/p>\n<p> 15.26 hrs.  <\/p>\n<p> \u00a0  <\/p>\n<p>(At this stage Shri Prabhunath Singh, Shri Rajiv Ranjan Singh \u2018Lalan\u2019\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0and some other hon. Members lef the House.)  <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20ANANTH%20KUMAR%20\">SHRI ANANTH KUMAR <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=BANGALORE%20SOUTH\">BANGALORE SOUTH<\/a>): He is defending the price rise. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Nobody is defending the price rise. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Please do not record anything.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, at the risk of repetition, let me say nobody is defending the price rise. If hon. Members wish to appreciate the steps which the Government is taking and if they wish to suggest what steps the Government should take, I respectfully submit that first we must try to understand \u2013 and I am trying to explain to the best of my ability \u2013 why this price rise has taken place and then I will tell them what measures we are taking. \u2026 (Interruptions) I am sorry, that is not correct. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: If you have delivered the judgement that it was due to the wrong policies, then the Minister need not reply.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, it seems they do not want to know why it is happening. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Please do not record anything.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Mr. Finance Minister, unless you yield, I will not allow anybody.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%20SHRI%20P.%20CHIDAMBARAM\"> SHRI P. CHIDAMBARAM<\/a>: I am not yielding.\n<\/p>\n<p>* Not recorded  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Please go on with your reply.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A5%8B.%20%E0%A4%B0%E0%A4%BE%E0%A4%B8%E0%A4%BE%20%E0%A4%B8%E0%A4%BF%E0%A4%82%E0%A4%B9%20%E0%A4%B0%E0%A4%BE%E0%A4%B5%E0%A4%A4%20\">\u092a\u094d\u0930\u094b. \u0930\u093e\u0938\u093e \u0938\u093f\u0902\u0939 \u0930\u093e\u0935\u0924 <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%85%E0%A4%9C%E0%A4%AE%E0%A5%87%E0%A4%B0\">\u0905\u091c\u092e\u0947\u0930<\/a>): \u0905\u0927\u094d\u092f\u0915\u094d\u0937 \u092e\u0939\u094b\u0926\u092f, &#8230;( \u0935\u094d\u092f\u0935\u0927\u093e\u0928)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%85%E0%A4%A7%E0%A5%8D%E0%A4%AF%E0%A4%95%E0%A5%8D%E0%A4%B7%20%E0%A4%AE%E0%A4%B9%E0%A5%8B%E0%A4%A6%E0%A4%AF%20\">\u0905\u0927\u094d\u092f\u0915\u094d\u0937 \u092e\u0939\u094b\u0926\u092f <\/a>: \u092f\u0939 \u092c\u0939\u0941\u0924 \u0926\u0941\u0916 \u0915\u0940 \u092c\u093e\u0924 \u0939\u0948 \u0915\u093f \u0907\u0924\u0928\u0947 \u0938\u0940\u0928\u093f\u092f\u0930 \u092e\u0948\u092e\u094d\u092c\u0930 \u092d\u0940 \u092c\u0948\u0920\u0947-\u092c\u0948\u0920\u0947 \u0907\u0902\u091f\u0930\u092a\u094d\u091f \u0915\u0930\u0924\u0947 \u0939\u0948\u0902\u0964\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, if we shut our eyes to these facts, we will not be able to find an answer. These are facts which stare at our face. We cannot shut our eyes to these facts. These are underlying causes. We must address the underlying causes, not the superficial wounds. I am trying to explain what are the underlying causes and what steps we are taking to address the underlying causes.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The first is \u2013 and I say this with respect, please bear with me \u2013 that the area under foodgrains has stagnated between 120 million and 125 million hectares. Of this, the area under wheat has stagnated between 25 million and 27.5 million hectares and the area under paddy has stagnated between 41 million and 45 million hectares. This is the position for the last 10 years. Leaving the outlier years, the production of wheat has stagnated between 68 million and 73 million tonnes and the production of rice has stagnated between 85 million and 91 million tonnes. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20GURUDAS%20DASGUPTA%20\">SHRI GURUDAS DASGUPTA <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=PANSKURA\">PANSKURA<\/a>): Who has to take responsibility for this? \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: I will answer that. \u2026 (Interruptions) Sir, I am grateful to them that now they are asking me why there is stagnation. But, at least, first let me lay the ground work. I will now deal with why there is stagnation.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, productivity has also stagnated. In the case of wheat, the productivity has stagnated for the last 10 years at 2700 kg. per hectare and in the case of rice it is approximately 1,950 kg. per hectare. These are structural issues in agriculture. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Mr. Minister, please do not respond to this. I once again appeal to hon. Members not to disturb the Minister. If I find that Members are not willing to listen to him, I will close the debate.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: The structural issues in agriculture can be addressed only if we increase the irrigated area of land, only when we increase irrigation facilities, introduce new seeds, rationalize the use of fertilizers, provide storage and post-harvest facilities, improve production and productivity. There are no short-term answers to the problems that afflict our agriculture. Agriculture requires long-term answers. Given these structural deficiencies and structural difficulties, what are the steps we are taking to address the price rise, I am coming to that in a moment.[R36]\u00a0   <\/p>\n<p>T[r37]\u00a0he third reason, it may surprise you, is public expenditure is on the rise and justifiably so because of the flagship programmes of the UPA Government, because of the NCMP commitment to increase expenditure in the social sector, especially, education and health.\u00a0 Public expenditure has doubled or trebled in many sectors.\u00a0\n<\/p>\n<p>As expenditure increases, demand increases.\u00a0 When there is a certain amount of stagnation in the supply side, when demand increases, it has an effect on prices.\u00a0 We must recognize that this public expenditure is something which Parliament has consciously voted upon.\u00a0 We have not taken counter cyclical measures of reducing public expenditure because it will affect the poor people, because education will be neglected, because health will be neglected, because the road building programme will be neglected.\u00a0\n<\/p>\n<p>Year after year, this House has voted larger public expenditure.\u00a0 I have come to this House with larger outlays.\u00a0 I defend those outlays.\u00a0 They are necessary, they are justified.\u00a0 Let us recognize that they will have an impact on prices.\n<\/p>\n<p>Under the third reason, let us take, for example, Minimum Support Price of wheat.\u00a0Should the Minimum Support Price of wheat be increased or not? It should be increased.\u00a0 When you increase the Minimum Support Price of wheat, as we have done and increased it to Rs.850 per quintal \u2013 in fact, in three years we have increased\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A5%8B.%20%E0%A4%B5%E0%A4%BF%E0%A4%9C%E0%A4%AF%20%E0%A4%95%E0%A5%81%E0%A4%AE%E0%A4%BE%E0%A4%B0%20%E0%A4%AE%E0%A4%B2%E0%A5%8D%E0%A4%B9%E0%A5%8B%E0%A4%A4%E0%A5%8D%E0%A4%B0%E0%A4%BE%20\">\u092a\u094d\u0930\u094b. \u0935\u093f\u091c\u092f \u0915\u0941\u092e\u093e\u0930 \u092e\u0932\u094d\u0939\u094b\u0924\u094d\u0930\u093e <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%A6%E0%A4%95%E0%A5%8D%E0%A4%B7%E0%A4%BF%E0%A4%A3%20%E0%A4%A6%E0%A4%BF%E0%A4%B2%E0%A5%8D%E0%A4%B2%E0%A5%80\">\u0926\u0915\u094d\u0937\u093f\u0923 \u0926\u093f\u0932\u094d\u0932\u0940<\/a>) :\u00a0 700 \u0930\u0942\u092a\u092f\u0947 \u0938\u0947 1400 \u0938\u094c \u0930\u0942\u092a\u092f\u0947 \u0939\u094b \u0930\u0939\u093e \u0939\u0948&#8230;( \u0935\u094d\u092f\u0935\u0927\u093e\u0928)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: No please, unless he yields, I will not allow.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Do not record a word.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: I would request Md. Salim to please try to understand the reasons\u2026 (Interruptions) Nobody is blaming him\u2026 (Interruptions) All that we are trying to say is that these are the reasons\u2026 (Interruptions)\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, just now you heard\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MD.%20SALIM%20\">MD. SALIM <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=CALCUTTA%C2%A0%20%E2%80%93%20NORTH%20EAST\">CALCUTTA\u00a0 \u2013 NORTH EAST<\/a>): Sir, we are walking out in protest.\n<\/p>\n<p> 15.32 hrs.   <\/p>\n<p>(At this stage, Md. Salim and some other  <\/p>\n<p>hon. Members left the House.)  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%B6%E0%A5%8D%E0%A4%B0%E0%A5%80%20%E0%A4%AE%E0%A5%8B%E0%A4%B9%E0%A4%A8%20%E0%A4%B8%E0%A4%BF%E0%A4%82%E0%A4%B9%20\">\u0936\u094d\u0930\u0940 \u092e\u094b\u0939\u0928 \u0938\u093f\u0902\u0939 <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%A6%E0%A5%87%E0%A4%B5%E0%A4%B0%E0%A4%BF%E0%A4%AF%E0%A4%BE\">\u0926\u0947\u0935\u0930\u093f\u092f\u093e<\/a>) : \u092e\u0939\u0902\u0917\u093e\u0908 \u0915\u094b \u092e\u0902\u0924\u094d\u0930\u0940 \u091c\u0940 \u091c\u0938\u094d\u091f\u0940\u092b\u093e\u0908 \u0915\u0930 \u0930\u0939\u0947 \u0939\u0948\u0902\u0964 1200 \u0930\u0942\u092a\u092f\u0947 \u0915\u094d\u0935\u0940\u0902\u091f\u0932 \u092a\u0930 \u092c\u093e\u0939\u0930 \u0938\u0947 \u0905\u0928\u093e\u091c \u092e\u0902\u0917\u0935\u093e \u0930\u0939\u0947 \u0939\u0948\u0902, \u0907\u0938\u0938\u0947 \u092e\u0939\u0902\u0917\u093e\u0908 \u0924\u094b \u092c\u0922\u093c\u0947\u0917\u0940 \u0939\u0940&#8230;( \u0935\u094d\u092f\u0935\u0927\u093e\u0928)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Nobody is justifying it\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20GURUDAS%20DASGUPTA%20\">SHRI GURUDAS DASGUPTA <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=PANSKURA\">PANSKURA<\/a>): Sir, we are not satisfied with the reply, so we are walking out.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: He is stating all the facts.\n<\/p>\n<p> 15.33 hrs.   <\/p>\n<p>(At this stage, Shri Gurudas Dasgupta,\u00a0 Shri Anant Gangaram Geete  <\/p>\n<p>\u00a0and some other hon. Members left the House.)  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Let there be peace after they walked out.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMABARAM\">SHRI P. CHIDAMABARAM<\/a>: Sir, they should listen to me, after all I have listened to all of them\u2026 (Interruptions)\n<\/p>\n<p> \u00a0  <\/p>\n<p>* Not recorded  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Nothing is being recorded.\n<\/p>\n<p>(Interruptions) * \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, I will answer them.\u00a0 If they want the figures for six years, I will give them those figures\u2026 (Interruptions) Please have patience for five minutes\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A5%8B.%20%E0%A4%B5%E0%A4%BF%E0%A4%9C%E0%A4%AF%20%E0%A4%95%E0%A5%81%E0%A4%AE%E0%A4%BE%E0%A4%B0%20%E0%A4%AE%E0%A4%B2%E0%A5%8D%E0%A4%B9%E0%A5%8B%E0%A4%A4%E0%A5%8D%E0%A4%B0%E0%A4%BE%20\">\u092a\u094d\u0930\u094b. \u0935\u093f\u091c\u092f \u0915\u0941\u092e\u093e\u0930 \u092e\u0932\u094d\u0939\u094b\u0924\u094d\u0930\u093e <\/a>: \u091c\u092c \u0906\u092a \u091c\u093e\u0928\u0924\u0947 \u0925\u0947 \u0924\u094b \u0906\u092a\u0928\u0947 \u0915\u0949\u092e\u0928 \u092e\u093f\u0928\u0940\u092e\u092e \u092a\u094d\u0930\u094b\u0917\u094d\u0930\u093e\u092e \u092e\u0947\u0902 \u0915\u094d\u092f\u094b\u0902 \u0932\u093f\u0916\u093e?&#8230;( \u0935\u094d\u092f\u0935\u0927\u093e\u0928)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%C2%A0SHRI%20P.%20CHIDAMBARAM\">\u00a0SHRI P. CHIDAMBARAM<\/a>: Sir, if Shri Malhotra will be patient, I am going to refer to the figures in their Government\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: I think, enough is enough.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: No, I do not allow.\u00a0 Senior Members are behaving in this fashion.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20KINJARAPU%20YERRANNAIDU%20\">SHRI KINJARAPU YERRANNAIDU <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=SRIKAKULAM\">SRIKAKULAM<\/a>): Is he happy with the price rise?\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Is he happy? I am not happy, he is not happy.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Please do not record a word.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: No questions please.\u00a0 Mr. Finance Minister, do not respond to any unauthorized question.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, take, for example, the Minimum Support Price of wheat.\u00a0 We are proud, we are happy that we have been able to give Rs.850 per quintal.\u00a0 This was Rs.620 per quintal and we have increased it to Rs.850 per quintal\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=%E0%A4%AA%E0%A5%8D%E0%A4%B0%E0%A5%8B.%20%E0%A4%B5%E0%A4%BF%E0%A4%9C%E0%A4%AF%20%E0%A4%95%E0%A5%81%E0%A4%AE%E0%A4%BE%E0%A4%B0%20%E0%A4%AE%E0%A4%B2%E0%A5%8D%E0%A4%B9%E0%A5%8B%E0%A4%A4%E0%A5%8D%E0%A4%B0%E0%A4%BE%20\">\u092a\u094d\u0930\u094b. \u0935\u093f\u091c\u092f \u0915\u0941\u092e\u093e\u0930 \u092e\u0932\u094d\u0939\u094b\u0924\u094d\u0930\u093e <\/a>:\u00a0 \u0909\u0938\u0915\u0947 \u0938\u093e\u0925 \u091c\u094b\u0921\u093c\u0928\u0947 \u0915\u093e \u0915\u094b\u0908 \u092e\u0924\u0932\u092c \u0928\u0939\u0940\u0902 \u0939\u0948&#8230;( \u0935\u094d\u092f\u0935\u0927\u093e\u0928)\n<\/p>\n<p> \u00a0  <\/p>\n<p>* Not recorded  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Mr. Malhotra, this does not behove your status. \u092f\u0939 \u0905\u091a\u094d\u091b\u093e \u0928\u0939\u0940\u0902 \u0932\u0917\u0924\u093e \u0939\u0948\u0964 You are opposing every sentence.\n<\/p>\n<p>\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=PROF.%20VIJAY%20KUMAR%20MALHOTRA%20\">PROF. VIJAY KUMAR MALHOTRA <\/a>: Sir, we are not satisfied with the reply, so we walk out.\n<\/p>\n<p> 15.34 hrs.   <\/p>\n<p>(At this stage, Prof. Vijay Kumar Malhotra, Shri Braja Kishore Tripathy  <\/p>\n<p>\u00a0and some other hon. Members left the House.)  <\/p>\n<p>\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, Mr. Ananth Kumar made some very interesting and controversial points.\u00a0 He said that the period\u2026 (Interruptions) He should listen to this now\u2026 (Interruptions) He says, \u2018in 1979-80, presumably referring to the rule of Janata Party, we witnessed the lowest inflation\u2019.\u00a0 I wish to remind him that in 1979-80, the WPI inflation was 17.12 per cent, one of the highest in the decade\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Only the Finance Minister\u2019s statement will be recorded.\n<\/p>\n<p>(Interruptions)* \u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, Vajpayeeji and Advaniji will bear me out,\u00a0 in 1979-80, the inflation was 17.12 per cent and coupled with that there was a negative GDP growth.\u00a0 The GDP growth was minus 5.2 per cent\u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Please carry on, Mr. Finance Minister.[r38]\u00a0  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Sir, he provoked me to point this out.\u00a0 Mrs. Indira Gandhi led the Congress Party to a resounding victory in March 1980.\u00a0 She took two years to moderate the inflation and put the country back on the growth path.\u00a0It took two years.\u00a0 Go back to the figures. \u2026 (Interruptions)\u00a0 You asked for the figures and you are getting them. I will talk about NDA Government now.\u2026 (Interruptions)\n<\/p>\n<p>\u00a0  <\/p>\n<p> \u00a0  <\/p>\n<p>* Not recorded  <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER\">MR. SPEAKER<\/a>: Do not write.\u00a0 Nothing will go on record.\n<\/p>\n<p>(Interruptions) *\u2026   <\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM\">SHRI P. CHIDAMBARAM<\/a>: Likewise, there is a myth that the period of the NDA Government witnessed low inflation.\u00a0 I am not justifying it; I am not scoring debating points; it is not my intention to say this.\u00a0 But if I am taunted again and again, before I outline measures, I have to give these figures.\u00a0 I have pointed out more than one occasion, in three out of six years the average inflation was more than 5.4 per cent.\u00a0It was 5.9 per cent in 1998-99; 7.2 per cent in 2000-01; 5.5 per cent in 2003-04.\u00a0 This will interest Shri Ananth Kumar if he is listening to it somewhere.\u00a0The year 2000-01, in 48 out of 52 weeks, inflation was over 6 per cent; in 22 of those weeks, it was over 7 per cent; during 12 of those weeks, it was over 8 per cent, hardly a record to be proud of.\u00a0As the NDA Government was laying down office on 1st June 2004, inflation had once again touched 6 per cent.\u00a0 These inflation figures must also be correlated to growth figures.\u00a0 The average GDP growth in the first five years of the NDA Government was 5.32 per cent.\u00a0 Even if we add the sixth year, which witnessed high growth on the back of very low growth in the previous year, the average comes to only 5.85 per cent.\u00a0Hence the NDA Government can be characterized as a period of low growth together with moderate to high inflation.\u00a0What is the record that he is proud of?\u00a0\u00a0\u00a0 I admit that last year, average inflation was 5.4 per cent.\u00a0 I said it in my Budget Speech.\u00a0 But in three out of the six years it was over 5.4 per cent.\u00a0 Nobody asked at that time why is inflation over 5.4 per cent; nobody asked what are the reasons for that inflation.\u00a0 Did you not say that inflation is high because of the demand being high? Did you not say that inflation is high because commodity prices are high?\u00a0 Did you not say that inflation is high because production is low and supply is low?\u00a0\n<\/p>\n<p>\u00a0  <\/p>\n<p> \u00a0  <\/p>\n<p>* Not recorded  <\/p>\n<p>How do the economic reasons change from regime to regime?\u00a0 How do the economic causes change from Prime Minister to Prime Minister?\u00a0We are trying to understand as to what is happening to the economy in India, in the world.\u00a0 We are trying to understand the reasons and I am trying to explain how each of these reasons is being addressed.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, I take no comfort from the facts that I pointed out about 1977-80 or 1998-2004.\u00a0 I take no comfort at all.\u00a0 Let me assure Vajpayeeji and Advaniji, I take no comfort at all.\u00a0All I am pointing out is that we must try to understand what the underlying causes are.\u00a0 Unless we address the underlying causes, we cannot moderate price rise to a level which is accepted as tolerable today, which is about 4 per cent to 4 \u00bd per cent.\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 After the UPA Government took over in May 2004, we succeeded in moderating inflation to below 4.5 per cent by June 2005.\u00a0 For most of the next 12 months, it remained around 4.5 per cent.\u00a0 In fact it touched a low of 3.3 per cent in August 2005.\u00a0 I concede that beginning June 2006, there has been an upward movement of WPI.\u00a0 We are here to discuss the reasons for rise in prices and I shall do my best to explain the steps taken by the Government to moderate inflation.\u00a0 I may add that WPI we touched a high of 6.5 per cent in February-March appears to be moderating.\u00a0 For the week ending 28th April, WPI was 5.66 per cent.\u00a0 This is still above the range indicated by the RBI; it is still above what I would call the tolerance level of the people of India.\u00a0Every effort is being made to moderate inflation to below 5 per cent and brings it close to 4.5 per cent.\u00a0 At the same time, I wish to point out to the hon. Members that the growth in the three years of UPA Government has averaged 8.6 per cent, a full three percentage points higher than the average growth in the NDA Government or in any decade in the past since Independence.\u00a0\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 I have given three reasons.\u00a0 I will very quickly say that the fourth reason is this.\u00a0The higher rate of growth of GDP has stimulated higher demands for goods and services.\u00a0 This is reflected in high growth of credit as well as in the fact that many industries are working in near-full capacity.\u00a0 Take for example cement.\u00a0 As a result, pricing power has returned to manufacturers and sellers.\n<\/p>\n<p>Finally, I come to the large capital flows.\u00a0 I am sure, Vajpayeeji and Advaniji will understand, as many do, if they only will shed their masks and understand the real reason.\u00a0 Look at the capital flows into the country.\u00a0\u00a0\n<\/p>\n<p>\u00a0[R39]\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 FDI net increased from 2.4 billion in 2003-04 to 3.7 billion in 2004-05 and 4.7 billion in 2005-06.\u00a0 On a balance of payment basis, FDI, in the first nine months of 2006-07, increased by 5.8 billion, and the year has ended with FDI of 16 billion.\u00a0Strong flows under the different items of the Capital Account resulted a large capital flow. Take, for example, remittances.\u00a0 Remittances, last year, are estimated to be 26 billion dollars to 28 billion dollars; FDI is 16 billion dollars; export earnings come in; ECB comes in; and as a result, foreign currency assets of RBI grew by unprecedented 46.8 billion dollars in 2006-07, of which the valuation gain is 10.8 billion.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 These are the five reasons why there is pressure in prices, high demand, high capital flows, and high commodity prices.\u00a0 The fact that public expenditure is high especially in the flagship programmes in respect of education and health, justifiably so.\u00a0 We justify this expenditure.\u00a0These are the reasons why prices have been under pressure.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 What are we doing to deal with this?\u00a0 There are only three broad sets of measures that can be taken to moderate prices.\u00a0 The first is fiscal measures.\u00a0 Now, a number of fiscal measures have been taken.\u00a0 As against the normal applicable duty of 50 per cent, we allowed private import of wheat at five per cent, we made it zero duty; customs duty import of pulses has been brought to zero; import duty on palm oil has been cut twice, first by 10 points and again by 12.5 points.\u00a0 We are maintaining the tariff value.\u00a0 Customs duty on cement has been made zero.\u00a0 Peak rate of basic customs duty of non-agricultural products has been reduced to 10 per cent, selected raw materials and capital goods have been reduced to 5 per cent to 7.5 per cent.\u00a0 Additional customs duty and counter-veiling duty on edible oils has been removed.\u00a0 Customs duty on sun flower has been reduced by 10 percentage points and again by 15 percentage points.\u00a0Excise duty on petrol and diesel has been reduced.\u00a0 Excise duty on a large number of food products has been reduced.\u00a0 Therefore, on the fiscal side, whatever steps can be taken in customs and excise have been taken, and we are willing to take more fiscal steps if the hon. Members have any suggestions.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Now, I come to the monetary measures.\u00a0 RBI has taken a number of monetary measures.\u00a0The Cash Reserve Ratio has been increased by 25 basis points each on six occasions \u2013 on December 23, January 6, February 17, March 3, April 14 and April 28 \u2013 to reach 6.5 per cent.\u00a0 The repo rate has been revised upward five times in 2006-07 by 25 basis points on each occasion to reach 7.75 per cent.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 RBI has also increased the risk rate for several sectors.\u00a0 Year after year, credit is growing by 30 per cent; non-food credit is growing by 30 per cent.\u00a0 RBI has moderated it because we do not want overheating in some sectors.\u00a0\u00a0 RBI is moderating it without affecting growth.\u00a0\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 So, monetary steps have been taken.\u00a0 We are willing to take further monetary steps, and we will take more monetary steps. But fiscal and monetary steps work in the medium to the long-term.\u00a0 The immediate problem is how to augment the supply side.\u00a0 Unless the supply of wheat, the supply of sugar, the supply of pulses, the supply of milk and the supply of rice are enhanced or augmented immediately, there will not be any moderation in inflation.\u00a0 Take, for example, sugar.\u00a0 It is a classical example.\u00a0 We had poor sugarcane crop and, therefore, the output of sugar was low and the sugar price was high.\u00a0 But what happened last year?\u00a0 We had a bumper sugarcane crop.\u00a0 Now, the farmers are saying that sugarcane is not being taken by the factory.\u00a0 One or two farmers are reported to have committed suicide because\u00a0 sugarcane\u00a0is not being taken by the factory.\u00a0There is a glut of sugarcane and the price of sugar has collapsed.\u00a0 The price of sugar has\u00a0 reduced by four rupees a kilo.\u00a0 In many parts of India, today, the retail price of sugar is less than the price which is paid for levy sugar, and the sugar mills are now saying: \u201cWe are going to suffer losses. We would not be able to pay the sugarcane farmer.\u201d\u00a0 Be that as it may, that is a separate issue, which the Ministry of Agriculture is addressing.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 It is supply alone, which will moderate prices of essential food articles.\u00a0 We must augment the supply of wheat, we must augment the supply of pulses, and we must augment the supply of edible oil.\u00a0 What have we done?[R40]\u00a0  <\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The STC imported 55 lakh tonnes of wheat last year and this year also the Ministry of Agriculture has made it very clear that we will import wheat to augment the supply. The decision was taken to release up to four lakh tonnes of wheat under open market sales scheme in February-March. There is ban on the export of pulses with effect from June, 22, 2006, ban on the export of wheat and skimmed milk powder from February 9, 2007. NAFED has executed a contract for import of 49,300 tonnes of pulses. The entire quantity was received in July-October period. To increase availability of pulses, NAFED has executed a new contract in December, 2006 for import of 30,000 tonnes of pulses out of which 26,837 tonnes have been shipped up to April 26, 2007 and in 2007-2008, the current year, the public sector agencies are expected to import an additional 15 lakh tonnes of pulses.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 For a sustained improvement in agricultural production and productivity, the Budget has proposed a number of measures to increase irrigation, availability of improved seeds, institutional credit and fertilizers and measures to accelerate the adoption of new technologies through a revamped training and visit system.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 We are taking every step to augment the supply. Take the example of pulses. There are not too many countries which grow pulses that India consumes. There is only Myanmar, Turkey and some chickpea in Canada and some pulses in Australia. These countries themselves can only spare us a certain quantity. We have taken every step to augment supply of pulses, edible oil and wheat. As the new crop of wheat has come in and will come and the new pulses crop comes in, I am confident that the prices of these essential food articles will moderate.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 There was some question about PDS and food subsidy. Let me quickly answer it. Hon. Members raised the issue about the PDS. I want you to kindly look at these figures. I have with me figures showing the allocation of rice and wheat to all the States for BPL, APL and Antyodaya Anna Yojana and off-take against the allocation for five years from 2002-2003 to 2006-2007. I implore you to please carefully look at these figures. The off-take of both rice and wheat as a percentage of allocation beginning 2002-2003 was 27.2 per cent, 33.8 per cent, 41.1 per cent, 43.6 per cent and in the last year 54.6 per cent. Hon. Members will note that the percentage has been rising every year, especially in the three years of the UPA Government. Nevertheless the highest off-take is only 54.6 per cent of the allocation. I hope I am making myself clear. We allocate food grains but they lift only a part. The highest lifting has been 54.6 per cent last year. The highest off-take was in 2006-2007 and this amounted to 434 lakh tonnes of rice was allocated and only 212 lakh tonnes of rice was lifted and 146 lakh tonnes of wheat was allocated and only 104 lakh tonnes of wheat was lifted. There is, therefore, no question of not allocating adequate quantities to the PDS. The problem is at the other end. The States must take more of the allocations and distribute the foodgrains more efficiently.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, you will recall that a demand was made \u2013 why are you not taking de-hoarding action. We wrote to all the Chief Ministers saying \u2013 please take de-hoarding action. Only seven States have responded. Which are those States? Three States \u2013 Himachal Pradesh, Maharashtra and Andhra Pradesh responded and they have taken de-hoarding action. Two States \u2013 West Bengal and Kerala \u2013 have responded and they have taken de-hoarding action. Delhi has taken de-hoarding action and Gujarat has taken de-hoarding action. I am not trying to give a political flavour. The political flavour is very clear. Four States, two States and one State have taken de-hoarding action. What about the other States? Why are they not taking de-hoarding action? The same power is available to the States. The same Act applies. But they are not taking de-hoarding action. We can only ask the State Governments to take de-hoarding action. The machinery is with them, the powers are with them.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Therefore, there is no question of not allocating enough to the PDS. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20ADHIR%20CHOWDHURY%20\">SHRI ADHIR CHOWDHURY <\/a>(<a class=\"marker_ref\" href=\"\/search\/?formInput=BERHAMPORE%2C%20WEST%20BENGAL\">BERHAMPORE, WEST BENGAL<\/a>): What are the details of off-take of PDS? \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM%20\">SHRI P. CHIDAMBARAM <\/a>: I have given you the figures. \u2026 (Interruptions)\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=MR.%20SPEAKER%20\">MR. SPEAKER <\/a>: He has not yielded.\n<\/p>\n<p><a class=\"marker_ref\" href=\"\/search\/?formInput=SHRI%20P.%20CHIDAMBARAM%20\">SHRI P. CHIDAMBARAM <\/a>: I will give it to you later.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Then the question was \u2013 what are we doing to PDS prices. Let me say this loud and clear. The last time PDS prices were revised was on July 1, 2002. [MSOffice41]\u00a0  <\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Today, the economic cost of rice is Rs. 13.95 per kilogram. We are issuing it to APL at Rs. 7.95, to BPL at Rs. 5.65 and to Antyodaya at Rs. 3 per kilogram. The economic cost of wheat is Rs. 11.64 per kilogram. We are issuing it to APL at Rs. 6.10, to BPL at Rs. 4.15 and to Antyodaya at Rs. 2 per kilogram. Why are we doing this? We are doing this to restrain prices so that the PDS wheat and PDS rice is available at a price which was last revised in July, 2002. We are not increasing the prices. If only they had lifted more quantities and distributed more quantities at this price, it will have a moderating effect on prices. So, what is it that the Government at the Centre is not doing to help the State Governments to moderate prices?\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Then, there were some questions that subsidy bill has come down. That is a very superficial reading. The subsidy has been around Rs. 25,000 crore a year. While the quantity lifted under PDS has increased every year, I just gave out the figures, it may appear that the food subsidy bill has remained more or less constant. The reason is that food subsidy bill includes the carrying cost of food stocks. Since the stock of food\u00a0 in the public stocks has declined over the last two years, the carrying cost has come down and therefore, the subsidy bill has remained constant. It is not because we have reduced the subsidy to the consumer. The subsidy to the consumer is the figures which I have just read out. The subsidy to the consumer is intact. In fact the subsidy has increased; the food stocks have come down and the carrying cost has come down. That is the first reason.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The second reason is that Food Corporation of India is financing its operations today more efficiently. Therefore, it is able to show savings on the head \u2018interest\u2019.\n<\/p>\n<p>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Sir, there were some questions about leakages and diversions in the PDS. To get an independent feedback, the Government commissioned two Evaluation Studies, one by the PEO of the Planning Commission and the other by ORG-MARG. These studies were received in March and September 2005 respectively. The reports of the studies were sent to all the State and UT Governments. Four regional Conferences and one national Conference of State Food Secretaries and State Food Ministers were held. Based on the discussions and feedback in these Conferences, a 9-point action plan was jointly formulated. Action taken is regularly reviewed by the Department of Food to minimise scope for diversion. The Department has rationalised allocations and off-takes of wheat and rice. The Secretary, Food and PDS, Government of India has written to all the Chief Secretaries in March 2007 impressing upon them the need to strengthen and expand the PDS.\n<\/p>\n<p> \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0Sir, I would say that while some of the causes behind price rise are beyond our control, we have taken monetary measures and we have taken fiscal measures. The inflation is 5.4 per cent. It will moderate as these\u00a0 measures take effect. In the short-term, the Government is taking all the measures within its power to augment supply and supplies were augmented of wheat, paddy, rice, sugar, milk, palm oil and edible oils. Prices will moderate as we have done before. As we had moderated prices in 1980 and as we moderated prices in 2004-05, I am confident that the prices of essential articles will also moderate as these measures take effect.   \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Lok Sabha Debates Further Discussion On Price Rise Raised By Shri Prabodh Panda On &#8230; on 17 May, 2007 &gt; Title: Further discussion on price rise raised by Shri Prabodh Panda on 15.05.2007 (Concluded). \u00a0 \u0936\u094d\u0930\u0940 \u0905\u0928\u0902\u0924 \u0917\u0902\u0917\u093e\u0930\u093e\u092e \u0917\u0940\u0924\u0947 (\u0930\u0924\u094d\u0928\u093e\u0917\u093f\u0930\u093f):\u092e\u0939\u094b\u0926\u092f, \u092e\u0939\u0902\u0917\u093e\u0908 \u092a\u0930 \u092e\u0947\u0930\u093e \u092d\u093e\u0937\u0923 \u0905\u0927\u0942\u0930\u093e \u0930\u0939 \u0917\u092f\u093e \u0925\u093e\u0964 \u091c\u0939\u093e\u0902 \u0938\u0947 \u092e\u0948\u0902\u0928\u0947 \u0916\u0924\u094d\u092e \u0915\u093f\u092f\u093e \u0925\u093e, \u0935\u0939\u0940\u0902 [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-27578","post","type-post","status-publish","format-standard","hentry","category-judgements"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Further Discussion On Price Rise Raised By Shri Prabodh Panda On ... on 17 May, 2007 - Free Judgements of Supreme Court &amp; 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