A slight decline in inflation was anyway expected (Sensex up 257 points as inflation eases, Business Line , January 15). And it might help the RBI in shaping the monetary policy. Can we now expect a rate cut?

There may be some reduction in prices. But the government has done enough. It is said that the gene bank is behind the rising farm output by helping multiply seed variants.

And the good news is productivity may still be up.

It should help consumers through reduced prices, farmers through increased earning with increased output and the country through increased export.

A. Jacob Sahayam

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Revisit PF Pension

This refers to the Labour Ministry’s proposal to hike the minimum provident fund pension to Rs 1,000. Hiking the minimum pension amount alone will not be sufficient in the changed scenario.

With the ever escalating cost of living coupled with fast and continuous erosion in money value, there is a very strong case for thoroughly revisiting the PF pension scheme.

Plenty of employees who have toiled for years in their service are living in utter penury; the pension scheme is not giving any relief.

N.Vijayagopalan

Thiruvananthapuram

Pension worries

Increase in the share of the elderly population to the gross domestic product is straining pension funds all over.

The RBI has already issued warnings in this regard through its recent Financial Stability Report. Encouraging people to invest in the National Pension Scheme by providing Income Tax Incentives and mandatory coverage of the younger section of the workforce in it are measures to strengthen its Corpus Funds.

Exposure of pension funds to the market to strengthen its capital base is risky in volatile market conditions but can also pay off if invested judiciously. C.Gopinath Nair,

Bangalore

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