Inflation concerns

This is with reference to the editorial “Baby steps cannot curb inflation” ( Business Line , April 22). The poor and middle classes are really struggling with the price rises on everything in India. For them, it really doesn't matter whether the growth has slowed from 9 per cent to 8.5 per cent to tackle inflation. The need of the hour is exactly that and the RBI should take stern measures to increase the interest rate.

However, it should also be mindful of the fact that the US Federal Reserve is still relaxed on its monetary policy, while the emerging central banks and ECB have started raising interest rates. Any attractive hikes here would allow more speculative cheap money to flow into the country, chasing higher yields. Like Brazil, India should take strict capital control measures on managing the “hot money”, lest it suffers macro risks.

Varad Seshadri

Rule of law

“President's rule ahead of Elections” ( Business Line , April 22) was most interesting. If at all there is something called ‘rule of law', it was what we were witness to during the run-up to the elections. It is a very sad state of affairs in our country that the law-makers think the law they enact is for all the citizens, save themselves! If this tendency is not curbed by the elected representatives, it is very likely our Democracy will cease to be.

When the Governor of the State of Illinois, in the US, was found on the wrong side of the law, he was not only charged but also put behind the bars, in record time (especially by Indian standards!).All this took place very soon after the current President of the US took office, the accused Governor also having been close to Mr Barack Obama. Fraudster Bernie Madoff, charged with swindling millions of dollars through his Ponzi-type schemes, is cooling his heels in jail for a term that may be beyond the comprehension of Indian law-makers! In most other countries, it is the system that works for the citizens; here it is the individual who occupies the elected seat who runs the affairs of the state, like the erstwhile Maharajas who ruled according to their whims. God save Mother India.

Kandasamy Koomarasamy

President's rule

The pat for the Election Commission of India, in general, and with reference to the conduct of the April 2011 election to the Tamil Nadu Assembly is well-deserved in “President's rule ahead of Elections” ( Business Line , April 22). The author is right in saying that the EC's overseeing role begins to wear off after some time and I would venture to say that the precise period when that happens is between close of campaign and beginning of voting.

If the EC tightens its control in these two days, money power could be controlled even more. Though the idea of dissolving the State legislatures and Parliament too at the time of elections deserves to be acted upon, in the interregnum, the present set-up may be followed, provided the Chief Electoral Officers at the State level are persons of sterner stuff at the time of elections.

The idea of giving the ECI a say in the posting of independent and above-partisan-politics governors may be given a try. If Bangladesh can do it, why can't we, a so-called ‘mature' democracy!

Chidambaram Kudiarasu

Commodity speculation

This refers to “Step up private input, use-efficiency to beat resources shortage: PM” ( Business Line , April 22). To meet the goal of Twelfth Five-Year Plan, India has to fight “commodity speculations” so that price inflation is kept in check and the costs to the community and the country is kept at reasonable levels.

Without such control, the key to curbing price inflation, the talk of “doing more with less” is a sort of mere lip service that will only encourage food inflation and tempt marketers to demand higher prices for smaller quantities of a product.

First, the authorities have to talk down the prices, meaning clamp down on speculation, this may show the way to fulfil Plan goals without borrowing more money and getting deeper into debt. So, attention should focus on the real cause of inflation — speculation in commodity prices to create wealth only for a few.

Ganesh C. Bhuyan

GM food safety

With reference to “Concerns on GM food safety unfounded” ( Business Line , April 20), it is a fact that apples are different from rice, fish, coconuts, onions and all other foods. Nature has genetically modified the original cells of many animals and plants.

Some are deadly, some are sweet, but not all are fit to eat, even if all are GM naturally. But farmers whose grain, fruit, meat, etc., become contaminated by the environmental pollutants from genetically modified grain, fruit, meat, etc., should be compensated by those who initiated/allowed those practices.

In water law, riparian rights mean one cannot damage the neighbours' water rights; this would seem analagous. Perhaps GM food sources should have extra modification made so they can not interbreed with “natural” plants and animals.

John Van Egmond

Cash transfers

The main objective of such schemes as subsidised kerosene for the poor or military canteens providing goods at concessional prices is to ensure that the poor or those making sacrifices for the country receive basic necessities at low cost. If, as “Cash transfers are preferable any day” ( Business Line , April 21) presumes, a cash transfer is made in lieu of PDS supply, how will inflation in price of essential commodities be tackled?

A poor fisherman gets, say, 20 kg of rice for a cash subsidy of Rs 1,000 this month. He may only get 18kg the next month for the same amount, in view of inflation. Therefore, the objective of meeting the basic needs of the underprivileged is not met.

Rather than de-risking against inflation by supplying items through PDS, the cash subsidy may further compound inflation risk to the poor. Perhaps the authorities should think about this.

Sundararajan

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