The Hindu Business Line : “Deflating prices”

The editorial “Deflating prices” has suggested measures such as restricting the flow of easy money, extending the public distribution system (PDS) to edible oil and pulses, increasing role of the Central Government in the PDS, and so on, to bring down the price level in the country (Business Line, April 16).

One feels that the Centre and the State Governments and the private sector can even abstain from increasing the salaries and allowances such as, say, DA, for their staff, (albeit, declaring financial emergency — cutting salaries of staff — is not feasible) till the situation on the price front improves considerably. Needless to say, steps have to be taken simultaneously to increase the production of all essential goods in the economy.

Unless there is co-operation (in this regard) from all the sectors in the economy, which of course involves a great deal of sacrifice, the inflationary ghost (which is haunting the world in general and India in particular) cannot be conquered.

S. Ramakrishnasayee Ranipet

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