Letters to the Editor dated August 5, 2022

Updated on: Aug 05, 2022

RBI fires yet another salvo

This refers to ‘RBI raises repo rate by 50 bps to 5.40% to tame inflation’ (August 5). The RBI’s six-member MPC yet again raising the repo rate by 50 basis points to cool inflation did not come as a surprise. Despite the RBI having caught markets off guard with a 40 bps hike in May, followed by a 50 bps increase in June, retail inflation has shown little signs of cooling.

A large segment of credit seekers do not depend on commercial banks for meeting their financial requirements as they have other avenues at their disposal. Also, food inflation, a major contributor to the CPI, remains outside the control of the RBI. So, the RBI’s latest salvo may still not be able to cool inflation.

SK Gupta

New Delhi

Pragmatic policy

Kudos to the RBI and the Monetary Policy Committee for being pragmatic in the background of global uncertainties.

The repo rate has been hiked keeping in mind macroeconomic factors such as inflationary conditions, volatility seen in exchange rates, apprehensions of a global recession, particularly in advanced economies, the continuing Russia-Ukraine war and geopolitical frictions among world powers.

It is now time for the government to revisit its fiscal policy and help create a conducive environment for growth of the economy.

TV Gopalakrishnan

Bengaluru

Carbon emission

Apropos ‘Decarbonisation (is not equal to) electric vehicles’ (August 5), it is quite true that greater focus on EVs will not dramatically reduce carbon emissions as EV battery recharge consumes power generated mainly from coal, a highly polluting power source.

Decarbonisation requires a multi-pronged strategy. EVs as such would reduce pollution on the roads but the burden shifts more to the power source.

Needed thrust must be given to achieving 25 per cent blended ethanol in vehicle fuel by 2025. Given India’s lengthy coastline, wind energy should also be promoted.

India is still at the beginning stage in using hydrogen as an alternative fuel.

Dedicated research is required to produce green hydrogen as an alternative fuel at an affordable cost.

RV Baskaran

Chennai

Drip irrigation for paddy

With erratic monsoon, there have been reports of a significant decrease of kharif paddy cultivation across the country, which is alarming in view of the fact that paddy is the major staple food.

Weather forecast of above normal monsoon during August and September may lead to a further decline in rice production.

The ministries concerned must take serious cognisance of this situation and encourage paddy farmers to take up drip irrigation for rabi crop by offering incentives. Drip irrigation has several advantages such as water conservation, enhanced yield, low input cost and reduced methane gas emission compared to traditional cultivation.

Rajiv Magal

Halekere Village, Karnataka

Settling tax cases

This refers to ‘Reducing tax litigation’ (August 5). Since around 66 per cent the cases are for demands less than ₹10 lakh, it would be worthwhile to apply the Pareto principle and divide the cases into two categories and follow two different litigation process to pursue them.

In the matter of trivial cases, the litigation process may be limited to the claim made by the assessing officer and Income Tax Appellate Tribunal (ITAT). Time limit for settling them should also be fixed.

As for some high-value cases, the alternative of voluntary arbitration may also be made available after the cases goes to the court.

YG Chouksey

Pune

Monkeypox: The lurking danger

Merely spreading awareness about monkeypox is not the solution. The government must list out the 78 countries which have reported cases of monkeypox and undertake checks at the airports of passengers coming from these high-risk countries.

Now is the time for surveillance, identification and isolation. The government must issue timely guidelines to safeguard the nation against the lurking danger of monkeypox.

Shruti Sharma

Ujjain, MP

Published on August 05, 2022
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