10th National Convention (Jalandhar-Punjab), 2, 3, 4 October, 2010

Resolution-3
Control Inflation – Save Common Man

For the last two years inflation has been raging in the country. While wholesale inflation has ruled over 10%, the food inflation has been ruling over 16-17 %. Rice, wheat, cooking oil, pulses, milk, fruits & vegetables, which are articles of daily consumption of the common man are rapidly going out his reach. The top functionaries of the central govt. especially the Prime Minister, The Finance Minister & The Deputy Chairman Planning Commission have been acting as sooth sayers, telling everyday that prices may come down after the monsoon, after state elections or after three months and what not. But the prices continue to defy them.

It is reported sometimes that nearly ten crore people may have slipped from their A.P.L. status to B.P.L. status on account of the raging inflation over the last two years.

The Government has liberally flooded the non agricultural sectors, especially the export sector with rescue packages. The R.B.I. is trying to flush the money out of circulation through its tight money policy.

The govt. seems to be working at cross purposes & is at a loss to understand what to do.

The freeing of petroleum prices has further added fuel to the burning fire of inflation. The liberal enhancement the salary & perks of The MPs by more than 300% from Rs. 16,000 pm. to Rs.50,000 shows the callousness of the ruling class as well as the political class as a whole, towards the sufferings of the masses.

The Central Govt. is running huge fiscal deficit due to wasteful expenditure. It was Rs. 3,36,992 crores in 2008-09 climbed to 4,14,041 crores in 2010-11. This is pumping more & more money into the economy causing inflationary spirals.

Large volumes of trading in food articles in the futures market and the futures derivative market by national as well as global agencies is very much responsible for the rising food inflation.

The U.P.A. I & II govt. have greatly succeeded in their policy of neglecting agriculture & bringing the country to this pathetic situation. While millions of people are suffering from hunger, millions of tones of food grains are being allowed to rot in the Food Corporation godowns & open storages.No responsibility is fixed and no one is punished.

No serious effort has been made to control hoarding & black marketing of food grains by trading companies especially the multinational trading companies, using the Essential Commodities Act.

S.J.M. Demands—
1. The Govt. should put and end to deficit budget regime and adopt soon surplus budgetary policy.
2. Future trading in food grains be totally banned forth with.
3. Greater importance to be given for agricultural production through proper pricing policy.
4. Control of inflation is to be given top priority in a time bound manner.
5. Strict action to be taken on Multinational Trading Agencies under the Essential Commodities Act.
6. The Govt. should calculate & publish regularly a comprehensive Retail Price Index.
7. A white paper should be published by The Central Govt. on the various actions taken to control inflation & their effectiveness.
8. The Govt. should adopt a true universal public distribution system and enlarge the commodities offered. They must be managed efficiently.