Prices of essential commodities are soaring high in India, since the present govt.has taken charge, why?

Question

The essential commodities like rice,wheat,pulses,oils,and other have raisen more than 50%hike for the past three years, making the common as well middleclass people not in a position to cope-up with raise in the prices, but the head of govt as well the finance minister are attributing other causes, ofcourse not taking any steps to arrest the price raise.

Answer 1

Don't you see all ministers are busy collecting their share from various traders, as they may not come to power again ?
This is another method of congress Government to control population in India.

Answer 2

It is the famous Onion Index in India.
The government is struggling to maintain an adequate monetary policy with the amazing economic growth rates that India has seen. It should be mentioned that unlike China that is a Communist country, India is the worlds largest democracy, and the government cannot control the markets.
Food is priced at 50% higher, onions (a staple of the Indian diet) is priced at 106% higher than last year).
It is not just food that is getting more expensive. The wholesale-price index (WPI), the most commonly used measure, rose to an annualised 6.6%, sharply above the ceiling of 5.5% set by the Reserve Bank of India (RBI), the central bank.

Prices have been pushed up by bad weather abroad, bringing a poor Australian wheat harvest, and by poor economic management at home. The RBI will probably have to tighten monetary policy further, in an effort to cool the overheating economy. To sustain India's current growth, longer-term measures are needed such as cutting subsidies and building infrastructure. The Indian Government has raised the interest rate several times already, but that has been nothing but a short-term damper on the economy.

Answer 3

The irony is that as quickly because it includes recession this authorities claims that Indian monetary equipment has been unaffected or no longer as badly affected as different countries and at the same time as it includes commodity expenditures they're retaining that that's the international phenomenon so basically they basically want to shake their palms off from this duty, yet as a count number of undeniable actuality that those 2 tremendous ECONOMISTS MMS and computer have failed or at the prompt are not in contact to do some thing in this, they basically want to misguide the overall public with strengthen figures.

Answer 4

because commodities price now being traded in stock market called Multi commodity Exchange .the artificial buying and selling goes in market with investors . people do not buy physical commodity but only buy tons of commodity on paper so the price soar ...as from outside country the money also keep funding to our Stock market .....price are moving higher and inflation is moving high also. Our Govt. shud remove basic commodites from stock market that shud realease burden for poor people of india. Govt has taken out wheat and rice already but shud need more.

Answer 5

This is because the money that govt. gets for development central officers digest them. Another reason is starting of retail chains like Big Bazaar. What they do, they hold half of the total production and then sell them at the prices they want.

Answer 6

All want more, latest. Govt. can not stop any one. Govt. can not force me to sell tea at Rs. 3/ or Rs. 5/-. Chhote Bhature are available from Rs. 7/- to Rs, 70/- for 2.
Buyer can search for cheaper. Bigger will always win.

Answer 7

This is the only way to keep the people busy in their day to day survival so that the capitalists can grab lands and secure their wealth for another 100 years.

Answer 8

High economic performance most often accompanies inflation, called the "twin growth" in economics.