|
CONTAINMENT OF INFLATION IS HIGH ON GOVERNMENT AGENDA: ECONOMIC SURVEY
|
|
|
Containment of inflation is high on the government’s agenda, says the Economic Survey 2007-08. The anti-inflationary policies of the government, include, inter alia, strict fiscal and monetary discipline; rationalization of excise and import duties of essential commodities to lighten the burden on the poor; effective supply-demand management of sensitive items through liberal tariff and trade policies; and strengthening the public distribution system. Some of the recent measures are as follows:
* To augment availability of wheat, the Public Sector agencies such as STC, MMTC and PEC are importing wheat during 2007-08. About 18 lakh tonnes of wheat was contracted upto January 9, 2008.
· To maximize procurement of wheat and paddy, the government approved an incentive bonus of Rs 100 per quintal during the Kharif marketing season 2007-08 for paddy.
· The support price for wheat inclusive of bonus was raised to Rs 850 per quintal in 2006-07 and further raised to Rs.1000 per quintal in 2007-08.
· To maintain price stability, the Central Issue Price for Rice and Wheat has not been revised since July 2002.
· There has been a continuous reduction in the import duty on edible oils. The customs duties on crude palm oil and soyabean oil effective from July 23, 2007 have been reduced to 45 per cent and 40 per cent respectively.
The rupee appreciated from Rs 44.48 to a US $ in March 2006 to Rs. 42.15 in April 2007 and further to Rs 39.4 in November and December 2007 resulting in the reduction in import prices which would also have a salutary impact on the general price level.
|
|
|
Case Look ups