The Hindu Business Line : Staving off inflation

This is with reference to the editorial “Inflation warning” (Business Line, September 24). The current inflation figure is at a not too-disturbing level. The government has also been stating that there is no proposal for hiking the petro-prices.

The steadily rising rupee value also should be a favourable factor in the context of the rising crude prices since there will be substantial reduction in the import cost.

Also, given the satisfactory position of agricultural production there may not be an immediate rise in inflation.

In view of the sizeable requirements of crude, however, it is advisable that the Government of India turns its attention seriously to encourage production of bio-fuels in a big way.

The increase in the cultivation of Jatropha and other bio-fuel materials is the need of the hour since dependence on imported crude to the extent of the country’s requirements is sure to impact the economy and drive the inflationary spiral sooner or later.

Recent reports had stated that there was large-scale loss of jobs where exports were the victim of rising rupee value.

Instead of providing sops to the affected sections, the government should analyse technically the issue of rupee appreciation and find permanent solutions to offset the negative effect.

T. R. Anandan Coimbatore