It is worth taking the suggestion of the author in “Assign a year-long mission to each R-Day” ( Business Line , January 26). It is a novel idea to have a mission to serve the people and Republic Day should not be a day of recalling the services of armed forces and paying tributes to our patriots.

Perhaps, it is time for many organisations to have community service programme and funds should be allocated for a year-long mission.

Many public sector banks do have a community service budget; this should find place in the balance-sheet. The rating agencies should have a grading mechanism to monitor mission and community service. It is time to take stock of our contribution to the nation as an individual, organisation and as citizens.

S. A. S. Sarma

Hyderabad

Fighting inflation

The editorial “Is this the right medicine?” ( Business Line, January 26) has hit the nail on the head by stating that the rate hike effected by the Reserve Bank of India, though marginal, is not convincing at this juncture, when growth is not broad-based. As per the present indications, the central bank will resort to further monetary tightening this March to contain inflation.

In a scenario of mounting inflation, what is needed is expansion of supplies of all goods and commodities, including food articles and manufactured goods. Public policy must constantly keep on addressing the issue of supplies.

Rate hikes by the RBI on account of continued monetary tightening will increase the production cost and, thereby, discourage producers and manufacturers from resorting to expansion plans to augment production. Restricting production and keeping the supply position at current levels will lead to increase in prices.

The remedy for inflation, thereby, lies not in monetary tightening and rate hikes but in ensuring adequate supplies .

The RBI must pay attention to liquidity expansion also to ensure availability of adequate credit for production purposes.

K. K. Ammannaya

Udupi

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