The Reserve Bank Governor, Dr D. Subbarao, finally made up his mind to tackle the runaway inflation by raising the repo rate by 50 basis points, a significant departure from baby steps to a strong, mature step. Food inflation is the cause of worry for the aam aadmi .

Even when the monsoon was good in 2010-11, the prices of essential commodities were ruling too high. It is a dreadful thought what if the monsoon fails in 2011-12. The frequent rise in crude oil prices is fuelling the inflation. Since the RBI cannot control the rise in oil prices in the international market, the steps taken to contain inflation are having a retrograde effect. No sooner are the Assembly elections over than the petrol and diesel prices are raised.

It looks farcical that steps are initiated to curb the inflation, on the one hand, and the prices of petrol and petroleum products are raised, on the other, neutralizing the effect of the action taken to rein in inflation.

The RBI's measure to curb money supply to counter the demand-pull inflation has had little effect in the past, as the affluent consumers buy what they want, whatever may be the cost. Even the sky-rocketing oil prices are not deterring the vehicle users to limit the use of vehicles. Time was when a bicycle was luxury. But now, there are many families which own more than one four-wheeler.

It remains to be seen whether the RBI action will prove successful in containing the inflation.

K. V. Seetharamaiah

Hassan

Ban endosulfan

This refers to the editorial “End(of)sulfan” ( Business Line , May 2), which had made some very good suggestions on the approach to the endosulfan issue. Nevertheless, many feel that the chemical pesticide endosulfan should be banned immediately to save the environment and the soil, apart from protecting human health.

In the year 1965, when endosulfan was introduced in India, it contained only 35 per cent of the emulsifiable concentrate, with the rest made up of a combined organic substance.

At that time there were no harmful effects to other beneficial insects. But today the product, manufactured by an MNC, is harmful to beneficial insects and the residue is hazardous to human health too.

Due to growing market competition with other insecticide manufacturers, endosulfan makers tend to mix cheap and dangerous materials that affect human health and the soil.

Many toxic pesticides, such as BHC, DDT, and enderin are banned worldwide, and endosulfan is banned in 82 countries. The Central Government should ban endosulfan immediately to save agriculture and the people who consume farm products believing them to be pure.

N. A. Ramachandra Raja

District President

Tamilaga Vivasayigal Sangam

Virudhunagar

Rajapalayam

Lokpal not the answer

Thank you, Mr Narender Pani, for bringing the most important points regarding the Lokpal Bill out into the open for discussions. It is very saddening that social issues are being hijacked by a few thousand people with the backing of the electronic media.

We don't have to go beyond the borders of our country to find out how the unelected authorities behave once they get into the constitutional positions.

If we look even the recent history / current events, we find Judges, Prasar Bharati chief, CVC, UPSC chief, have misused their positions.

And once such persons occupy these positions, it is very difficult to remove them. Contrast this with the ease with which Chief Ministers, Union Ministers are removed from their positions because of pressure of public opinion.

More important, the idea of a Jan Lokpal makes politicians answerable to two authorities — the people, through Parliament, and the Jan Lokpal. And it is common sense that having two bosses cannot work at the highest level.

Actually Jan Lokpal is façade by which the so-called elite want to usurp the power of the people. If anything is required to fight corruption, it is education of the masses, in its real sense. But that takes criticising people and their habits. Making them realise they have power to elect good people.

And it is absolutely necessary to vote in good candidates without succumbing to inducements. This is a long process. But a Jan Lokpal is definitely not the answer.

Anil P

Fee income

Banking on fees” ( Business Line , May 5) was an interesting pointer to bankers, especially in PSU banks, to focus on this unexplored area.

With gradual rise in the savings deposit rates, coupled with higher lending rates, the differential amounts do not augur well for banks' bottom-lines. Innovative products and services can increase the ‘fee income' of banks and may be well worth the effort of offering such services.

After setting a few examples, corporate bodies get to know the availability of such bank services and will prefer to use them if there are savings in time and cost. Thus, there can be a strategic alliance between banks and customers.

Staff costs and other administrative overheads of PSU banks are not reducing by the day and tend to pose a challenge to the management, which desperately tries to curtail costs by reducing the number of new recruits or offering Voluntary Retirement Scheme that can prove to be counter-productive, sooner or later. Time to use the route of fee-based income as an opportunity hitherto unexploited.

Ashok Jayaram

Bangalore

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