This refers to the timely editorial ‘Not a day too soon’ ( May 23). One tends to agree with its worthy observations that the salutary impact on prices of the Centre’s duty cut on fuels can be amplified if States follow through even as the Centre’s excise duty cut on petrol and diesel, by ₹8/litre and ₹6/litre, respectively, has come not a day too soon. While the Centre has quite appreciably gone ahead with making some reasonable ‘amends’ in the wake of rapidly climbing inflation, both wholesale and retail (15.08 per cent and 7.79 per cent for April) but it would still be ‘naive’ to expect some positive response, from the ‘non-BJP’ ruled States, this time around too. So that will leave the hapless citizens of these States high and dry. Why mix ‘petty’ politics with economics?

SK Gupta

New Delhi

The Centre has, at long last, decided to effect cuts in duties on petroleum products. Some States have also made a similar move on their levies. Retail inflation tends to rise quickly but its descent has historically been sluggish. There may be immediate but modest relief at the pump for users, but prices of other goods are likely to remain at an elevated level.

The overall disruption from the Ukraine conflict would further exacerbate the situation. The government ought to have undertaken this cut in the previous quarter. The imminent disruptions to internal goods movement due to monsoons, would worsen supply side woes to resist softening of prices.

That said, the cuts could provide a lead time for prices to cool and bring some festive cheer by September.

R Narayanan

Navi Mumbai

Ensuring credit to MSMEs

With reference to ‘MSME loans back on track’ (May 23), while the growing institutional credit flows into the MSME sector, and largely to the rural MSMEs have to be not only sustained but they must be given greater push.

While the uninterrupted supply of credit is essential to ensure adequate cash flows to the units to fund the different stages of production, it is also imperative to supply the credit facilities cost-effectively to sustain profit margins.

The climbing prices of indigenous and imported raw materials are increasing the price of finished products and hitting the competitiveness of finished products in the domestic and external markets. Although the cut in the excise duty on the pump price of fuel gives some respite, however, the high level of the persisting inflation is a drag on growth of these job-creating segments.

The repo rate hike and its transmission through the lending rates of financial intermediaries must be executed without creating an additional cost burden on the MSMEs to sustain the growth of the business of those units.

The credit supply to the units should be within their credit absorption capacity to prevent the growth of bad assets in the books of the lender.

Therefore, it is paramount to ensure that the loans availed by the units remain productive and that the MSME units are serving the objectives for which they were created.

VSK Pillai

Changanacherry

Hypertension worries

Apropos ‘Hypertension control should be national priority’, a sedentary life style, too much junk food, lack of exercise, and work pressure have all contributed to the rise of hypertension.

A change in life style would ensure that it is kept under control. Lack of symptoms is the major reason why it is ignored.

The fondness of most Indians for deep fried snacks and sweets has led to rising hypertension.

In earlier days, people would walk miles during the course of the day keeping hypertension at bay. The lifestyle today is quite different.

In view of the changed circumstances, there needs to be a relook at the ideal blood pressure level keeping in mind the age factor too.

Anthony Henriques

Mumbai

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