Following the statement, the Union Government, on 28th January, as a part of major pre-budget subsidy reduction exercise, raised the prices of food grains sold through the public distribution system (PDS) by 30 to 80 percent. As a result of this exercise, the people below the poverty line have to pay price for a kg of wheat from Rs. 2.50 to Rs. 3.25 and a kg of rice from Rs. 3.50 to Rs. 4.25. The people above poverty line have to pay price for a kg of wheat from Rs. 4.50 to Rs. 6.50 and a kg of rice from Rs. 5.50 to Rs. 9.05. The price of fertiliser has been raised from Rs. 3,600.00 to Rs. 4,000.00 per tonne. The price of sugar also has been raised from Rs. 11.40 to Rs. 12.00 per kg.

Food grains are the most essential items for all the people. As a result of this decision, the condition of the people below the poverty line will be further worsened and the bulk majority of the people above the poverty line will be drawn below the poverty line. Rise in prices of fertiliser will enhance the cost of agricultural operations that in turn bring rise in prices of all agricultural products.

This is the beginning of the year and the people are to pay more in coming days. Since liberalisation of our economy, the people of our country are continuing to pay. But what they have got and for whose benefit they are paying?

In turn, the people have got large scale closures of our domestic industries, addition of millions of workforce with the ever increasing ranks of unemployed, attacks on the earnings of the toiling masses, unforeseen rise in prices of all commodities including essential commodities, unbearable living conditions, ever increasing poverty, increasing deficit in balance of payments etc. There is not a single instance, which can tell that in turn the people have got something out of liberalisation.