This refers to “Tea industry needs to brew a management revamp”. Its solutions for the tea industry’s woes are too basic like functions, objective and systems of management which are applicable to any industry.

If labour costs comprise 60-65 per cent of total costs, the focus should be on raising labour productivity. This will require the involvement of trade unions. Cost reduction will lead to competitive pricing and more exports.

When consumption is subdued (both because of pandemic factors and availability of more choices of beverages), a sustained advertisement campaign and product quality enhancement is a worthwhile option.

YG Chouksey

Pune

Address supply bottlenecks

The repo rate and CRR hikes by the RBI seeking to tame inflation were predictable. Now policymakers must also address the supply side issues. On the food front, edible oils price spurt is a case in point. Here supply disruptions on account of the Russia-Ukraine war are responsible.

This is unlikely to be tempered by the rate hike and needs supply side solutions.

Similarly with respect to commodities like base metals, imports from China are affected due to the pandemic there and other reasons. With this supply restricted, domestic producers have raised prices.

We could however see rapid scaling up of domestic production to ease supplies and thereby prices. Private capex plans are encouraging. The government has rightly refrained from restricting exports. This could have hurt India’s image as a reliable, long-term global supplier.

V Vijaykumar

Pune

Flexibility in inflation targetting

This refers to the well-researched article ‘There's no escaping a growth sacrifice’ by RK Pattnaik (May 6). Like Railway Time Table for the Railways, inflation target is important for RBI.

Just like adherence to time table will depend on several factors like quality of the tracks, racks and engines and the skills of the workforce, keeping inflation on track is dependent on multiple factors, many of which are external for RBI.

RBI’s priority in monetary policy implementation will be ensuring need-based money supply and credit delivery.

The present inflation band of 4+/-2 percentage points was given more than five years ago. This target itself may be due for a review, considering the changes in the global economic environment.

The silver lining in the horizon is the harmonious relationship between the RBI and the Finance Ministry in recent years. Together, they have the weapons to balance the compulsions of controlling inflation and supporting growth.

MG Warrier

Mumbai

The crippling coal crisis

This refers to the article ‘The anatomy of the coal crisis’ (May 6). The key reason for the current coal crisis is the increasing demand for electricity due to the post-Covid recovery and unexpected heat wave. Thermal power stations have only seven days inventory of coal. Of course actions on a war footing are being taken to augment the supply of coal with increased railway wagons for transporting it.

The pivotal reason for the chronic coal crisis is the wrong policies of the Coal Ministry which allocated mines to undeserving private players.

Subsequent to the cancellation of coal mines by the apex court, companies had to resort to imports of coal at high prices.

Ministerial coordination with right coal policies and commensurate logistics will increase output and decrease the dependence on imports.

NR Nagarajan

Sivakasi

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