Hardly minor

This is with reference to ‘Watch the milk that you drink’ by RS Khanna (December 22). Food adulteration is rampant in India — in cereals, pulses, oils, oilseeds, spices and even tea and coffee. Sipping tea is deeply rooted in India’s culture, and hence milk is a commodity of mass consumption. As the apex court said, milk adulteration should not be treated as a minor offence. The government must act swiftly to amend the Food Safety Act, 2006 so as to prescribe stringent punishment before a calamity occurs. .

MA Khan

Chennai

Milk adulteration has been going on for years in our country and despite media highlighting it time and again no government did anything substantial on that front. Once again the Supreme Court has to come to our rescue by reprimanding the Food Safety and Standards Authority of India and making it a punishable offence. The biggest culprits are the middlemen supplying milk to private dairies. As the writer suggests, private dairies should replicate the cooperative milk procurement model. But will these private dairies take the trouble because that will involve dealing with thousands of small milkmen rather than only a few strong middlemen?

Bal Govind

Noida, Uttar Pradesh

Give it a boost

This pertains to the editorial, ‘Finding fiscal space’ (December 22). While presenting the Budget the Finance Minister accepted the challenge of confining fiscal deficit to 4.1 per cent of GDP in spite of the “legacy bills” of the UPA government. This required him to take several measures on the twin fronts of raising revenue and cutting costs. It did not happen for both global economic and domestic political reasons.

With just three months left, it is imperative to give a fillip to disinvestment as advised in the edit. This may not be sufficient. While quantum leap reforms are mired in politically motivated legislative hurdles and reducing subsidy was neglected in a State Assembly election year, some procedural and other corrections in investment and expenditure may add to good results.

These include an intensive drive to mop up huge tax arrears of about ₹8 lakh crore, going for out-of-court settlement of disputes of high financial value, curtailing power transmission losses amounting to 30 per cent of generation caused by thefts and encouraged by corrupt practices, realistic project cost evaluation (which is inflated to serve rent-seekers), reducing non-Plan expenditure and subsidies by a set percentage through checking wastages and delays, setting realisation of a certain percentage of non-performing assets of banks as the key result area of their top management, and using an out-of-the-box approach to generate more investment.

YG Chouksey

Pune

Integrating the market

This refers to ‘No further time to be lost on GST’ by Harishanker Subramaniam (December 22). The negotiations for GST owe a great deal to Finance Minister Arun Jaitley and the two ministers who chaired the committee of State-level finance ministers. The accommodating stance adopted by the parties and the Centre agreeing to compensation proved to be negotiation-clinching features. The government should take all steps to get the GST Act passed by the two Houses and adopt a conciliatory stance in appointments to the council.

It augurs well that the government has taken steps to set up the GST Network. With the involvement of experts, supported by officials of the CBEC and National Securities Depository Ltd, and guided by PwC, it is expected to be ready in time. Once GST becomes a reality, the States will get over the fear of the unknown and the GST council could make negotiated changes in light of ongoing experience. With the reduction of pockets of markets where supply-chain bottlenecks are phenomenally complex, GST will help create an integrated national market and pave the way for multiplier effects on business transactions and for boosting consumption and consequential production.

KU Mada

Mumbai

No joy in greed

This refers to the review of John Kampfner’s book, The Rich , by Vineet Gill (December 22). Some people’s opulence is mind-boggling and their unsatisfied greed is queer and incomprehensible. After all, how much money does one require to maintain even an outlandish lifestyle? Billions of poor people struggle for a square meal a day while a few millionaires enjoying unimaginable comforts are still not happy. While the former’s plight is remediable if the rich and super-rich show the will, the latter’s ‘disease’ is incurable. Strange are the ways of the world.

CG Kuriakose

Kothamangalam, Kerala

Good point

This refers to your edit, ‘Finding fiscal space’ (December 22). The chief economic advisor has a very good point when he says that we need to review our fiscal policy midterm. The private sector is drowned in debt and the sluggish economy means very low credit demand from individual borrowers. The government has to step in and start investing in roads, seaports, airports and irrigation projects to revive demand for industrial products. This will push the private sector to start investments and the cash flow generated will help our troubled PSU banks.

But where will the money come from? Aggressive disinvestment and mopping up more tax revenue from good tax administration will be a good source. The government bond market is attracting huge investments from foreign and domestic investors and this is the right time for the government to borrow if it wants to invest for the long term in our infrastructure.

The inflation problem that we have is related to food, vegetables and fruits. The government needs to do a lot more for enhancing agricultural productivity. The government should work towards these objectives instead of wasting time in Parliament answering the opposition on non-issues.

CR Arun

Email

Your suggestion to speed up PSU disinvestment is worth considering. However, disinvestment may give cash flow to the government at the cost of selling its assets. The government must explore the possibility of increasing its revenue. When crude prices are falling in the international market, it is opportunity to increase duty on the same so as to maintain the retail price at the current level. It is estimated that every one rupee increase in petrol may yield an annual income of ₹10,000 crore to the government. Even the ONGC disinvestment contemplated may yield only ₹15,000 crore.

Passing on the benefit of the fall in crude prices to consumers may increase demand which will adversely affect our current account deficit. Public may not feel the pinch when the increased levy on crude is timed properly with the reduction in international price.

Another area to concentrate on is reduction in the subsidy on LPG to affluent people. As the diesel price was increased in small doses, the LPG price can also be increased every month by ₹5 or ₹10 and one day we may remove the entire subsidy.

S Kalyanasundaram

Email

If we want to make in India

I have gone to many parts of the country on work and I have observed many things. There are no proper roads in many cities and villages. Our filthy trains and railway stations are a picture of neglect. We also lack the proper methods to preserve our fast depleting water resources.

Further, many industrial projects in the country have been left incomplete for various reasons, petty and political. What’s more, many jobless youngsters are roaming on the streets.

Serious and urgent steps are required to improve infrastructure and the transport system apart from creating more jobs in industries.

P Senthil Saravana Durai

Tuticorin, Tamil Nadu

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