This refers to the editorial “Misdirected subsidies” (March 13). The rise in price of diesel would definitely have an impact on the cost of transportation of foodgrains, fertilisers and other essential materials. Besides, it will have a direct cost impact on public transport.

Another area is the pricing of gas essential for cooking. It is, therefore, necessary that subsidies on fuels are continued. The proportion of wealthy people benefited by the subsidies is not the issue; what needs to be looked at is those directly benefited. The impact on prices if subsidies are removed can be assessed by the likely impact on prices and cost of transport if they are withdrawn.

TR Anandan

Coimbatore

Lucid argument

With reference to “Leave the RBI alone” by Dhananjay Sinha (March 13), there cannot be two opinions about the fact that the government and the RBI have to play their roles independently and take appropriate decisions with regard to fiscal management and policy rates, respectively. Unbridled fiscal profligacy is definitely not in the interests of the country. Nor is the attempt to influence the decisions of the RBI. The writer has succinctly and lucidly brought out the issues.

V Venugopal

Chennai

The crisp arguments put forth in favour of the need for consistency in approaching fiscal and monetary policies by the government and the RBI are more likely to sink in the ocean of issues being raised and debated in the context of Elections 2014.

The last decade has seen a marked deterioration in the relationship between the Finance Ministry and the central bank. It is amusing to see the Ministry forcefully pleading for a divorce from the RBI to which it is legally married and simultaneously defending a ‘living together’ relationship, post-divorce. Yes, the reference is to the commissioned report of the financial sector legislative reforms commission and the public defence of follow-up action being taken, even before legislative processes begin.

The sanctity of the relationship between the monetary and fiscal policies institutionalised by the RBI Act should be respected and any change should be made only after due deliberations in Parliament and between the RBI and the government.

Rising inflation and fiscal deficits are symptoms of deeper ailments and cannot be treated by prescribing targets, without policy support.

MG Warrier

Thiruvananthapuram

Go on, say it

In the article “Does KYC really help know your customer?” by Anna Mazzone (March 11), the writer was right about the futility of KYC but shied away from suggesting the logical step: scrap KYC. I was in the banking industry till late 1988 when there was no KYC and there were fewer frauds and scams. Today we have KYC, PAN and whatnot and it is scams galore.

ASJ Kumar

e-mail

Lives lost are lost

Despite the lurking threat of ambush, the CRPF and other paramilitary forces go about their usual exercises to comb for Maoists and gain area dominance for the mining companies to extract mineral deposits without any resistance. The nub of the matter is that the rapacity of the international mining companies looking for the loot of natural wealth results in the denial of the rights of tribals over their lands and livelihoods.

The state machinery evicts tribals from their lands and represses them in the face of resistance to give the mining companies a free run in the forested hills.

Reducing what is essentially a socio-economic issue into a mere law and order problem reflects an unwillingness to get to the root of the problem. De-militarisation is an essential pre-condition for things to return to normal.

Whether the lives lost are those of security forces, Adivasis or Maoists, it amounts to mindless violence.

G David Milton

Maruthancode, Kerala

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