What can actors do?

It is absurd to prosecute advertisers and celebrities for defects in the products they advertise or endorse. It is the licensing and health authorities who should be hauled up. Advertisers and celebrities who come on the scene later have no means of knowing the finer details and act in good faith.

The health hazards posed by carbonated drinks are well documented. Still, nobody appears bothered about their marketing and advertisement. The court order to file FIRs against the actors may cause some sensationalism. However it is illusory to expect them to be punished or anything substantial to come out of the Maggi case.

Manohar Alembath

Kannur, Kerala

Whose welfare?

As far as India is concerned, a cut in bank rate or repo rate or the RBI buying back securities from commercial banks (open market operations) or any cheap money policy measure can enhance investment, employment, income and output in the economy. Of course, it is presumed that commercial banks too will reduce their rate of interest to customers.

But the policy cannot control rising prices, which are due to both demand-pull and cost-push factors. In short, monetary and fiscal policies in the country can benefit banks and industries, but certainly not the people. But, paradoxically, we call ourselves a welfare state!

S Ramakrishnasayee

Ranipet, Tamil Nadu

The rate cut may trigger economic growth at the macro level for a short duration, but the crux of the problem is large-scale employment: money empowers only corporates and a few sections of society. The tangible benefits of rate cuts at the micro level are cheaper home and car loans. An individual spends of 40-60 per cent of income on rentals and paying home loans; thus the capital is static and unproductive. The government should introduce regulations to control exorbitant prices in real estate and utilise the surplus to generate employment and pave the way for equitable development.

Vikram Sundaramurthy

Chennai

Restructuring’s not the way

With reference to the editorial, ‘Staying its hand’ (June 3), had the RBI governor merely made a staid announcement of this marginal drop in key rate, the market might have reacted sedately. But his presenting a larger picture of an economy showing signs of stress seems to have pulled down sentiment. It is a measure of the hiatus between undue hope and the trending economic data. Rajan himself confessed that he is not a cheerleader.

Inflation, fiscal deficits and exchange rates are neither enduring enemies nor loyal friends; neither are traditional monetary measures a lasting anodyne. With a majority government in place, the central bank could have gone for a more liberal reduction.

Historically, softer key rates have enhanced business transactions and boosted our economy. That is a better way to address bank NPAs than restructuring them repeatedly.

R Narayanan

Ghaziabad, Uttar Pradesh

A looming crisis

A looming crisis is unravelling on the agriculture front — drought. The latest news from the IMD is that long period average rainfall this year would be only 88 just per cent of the normal; quixotically the minister for science and technology goes on record saying: “Let’s pray to God that the revised forecast does not come true”! Pray we must, but, more than that, what is the Modi government doing?

The slumbering monolith, ICAR, and the ministry of agriculture are still to come up with contingency plans for a failed monsoon. What crop mix should the farmers go in for? Advocacy for the system of rice intensification, where water use is minimal, for the main kharif rice crop is caught up in red tapism.

The poor farmers are just recovering from crop loss due to unseasonal rabi rains, and now comes the prospect of a drought. Despite more than half a century of ‘research’ and crores spent, Indian agriculture is still a gamble on the monsoon!

KP Prabhakaran Nair

Email

Inevitable

This refers to the editorial, ‘Staying its hand’ (June 3). Regarding the impact on inflation, there should be a fall in the cost of living which requires an easing of consumer commodity price levels. The consumer inflation is linked to supply position which calls for a boost in the industrial sector. It is beyond doubt that the rise in industrial activity needs easier cash availability for profitable functioning. Thus the availability of input funds is a pre-condition which can be achieved only by easing the interest rate. There is thus a need for lowering the interest rates. The boost in production will control inflation. The domestic cost will also be reduced, resulting in a rise in domestic savings.

TR Anandan

Coimbatore

As rightly observed the time is not appropriate for drastic reduction of lending rates when banks are bogged down with NPAs and restructured assets, with scarce means to raise further capital and gloomy global prospects. Despite government’s and RBI’s advice, many of our banks had not passed on to borrowers the earlier two rate cuts announced in March, fearing their profits would go to negative territory. Each bank will take its own time for transmission of monetary policy signals. Funds from the RBI may become cheaper but long-term liabilities would have more say in lending rate cuts. This is more apt as credit growth has been sluggish during the last three years and banks are struggling to maintain their margins.

Rugmani Vinod

Thiruvananthapuram

No relief for the poor

Under the Modi regime, the country is facing the same bad phase as it did during the UPA government’s time. Development has been forgotten and the government is busy addressing the internal disturbances of the party. The finance minister has taken no corrective measures for the relief of the poor. The common people are not able to save even a single rupee due to high inflation and price rise of essential commodities.

KA Solaman

Alappuzha, Kerala

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