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NEWSNOTES
Pre Budget Price Rise Evokes Wide Reaction

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usm-red.gif (836 bytes)Protest
Pre Budget price hikes raise widespread protests
usm-red.gif (836 bytes)Move to curtail labour rights
BJP govt's moves against labour

Online News

With only a month left for the next year's Budget to be placed before the Lok Sabha, the BJP-led Government at the Centre increased at unnaturally high rates the prices of rice, wheat and sugar supplied through the ration shops with immediate from January 28. The price of urea was also jacked up by a hefty Rs. 400 a ton-a decision that had been withheld by the previous United Front government considering the sufferings of the farmers.

The BJP already with a pitiable record of performance on all fronts hopes to collect an additional Rs. 5000 crores a year at one go. Political parties including those supporting the government have adversely reacted to the government decision. The CPI(M) politburo has also criticised the price hike of essential commodities.

No class of people has been spared from the price hike. Even those below the poverty line have become the target of attack of the BJP-led government.

In case of rice, those above the poverty line, will have to pay now Rs. 9.05 a kg as against Rs. 5.50 a kg earlier. The people below the poverty line will have to pay Rs. 4.25 a kg compared to Rs. 3.50 a kg earlier --- an increase of Rs. 0.75 a kg. People living below the poverty line used to get wheat from ration shops at Rs. 2.50 a kg. Now the revised price of wheat for them has been fixed at Rs. 3.25 a kg ---- they will have to pay an additional 75 paise for per kilogram of rice supplied to them from ration shops. For those above the poverty line, Rs. 2 more per kg of wheat will have to be paid. Wheat price has been revised upward from Rs.4.50 a kg to Rs. 6.50 a kg for them. Sugar in ration shops will cost 60 paise more per kg for all categories of buyers. The price of sugar has been raised from Rs. 11.40 a kg to Rs. 12 a kg. The ex-factory price of urea has been increased from Rs. 3,600 a ton to Rs. 4,000 a ton --- a rice of Rs. 400 a ton and that is Rs. 17 per bag more. Local taxes will be added to the ex-factory price.

The politburo of the CPI(M) has strongly criticised the Centre's decision to make a hefty rise in price of by an administrative order essential commodities supplied through ration shops. The politburo is of the opinion that the Government decision will immediately adversely affect the price situation in the open market. Inflation will be on the upswing, it says.

The politburo said in a statement that the Centre in the last year's budget had tried to raise the price of urea. But the Centre then was forced to back off taking note of the higher cost of agricultural produce and its overall effect on the prices of essential commodities. The present BJP-led government surreptitiously has resorted tot he same "anti-people" measure.

The statement said that the Centre was attempting to scale down the huge fiscal deficit during the current year before placing the next Budget in the Lok Sabha by putting heavy financial burden on the common people. It is unfortunate that the sufferings of the common people have increased already because of the anti-people policy being pursued by the present Central Government. The latest bout of increases in the prices of rice, wheat, sugar and urea was another blow to them. The financial burden caused by the Centre's decision had no parallels in the past, the statement said.

Opposing the BJP-led government's decision, the politburo of the CPI(M) called upon the party units all over the country to organise protests against it. The West Bengal State Committees of the CPI(M) also orgaznised demonstrations all over the State of Friday against the rise in prices of rice, wheat, sugar supplied through ration shops. The CITU will observe a countrywide 'protest day' on February 2.

Not only the Left parties, allies of the BJP who have been supporting the BJP-led government have come out protesting the steep rise in prices of essential commodities such as rice, wheat and sugar.

Mr. Chandrababu Naidu, Chief Minister of Andhra Pradesh and leader of the Telagu Desham Party said the Centre's decision very harmful would have to be kept in abeyance. Ata Press Conference, the BJP ally Mr. Naidu said a meeting of the Chief Ministers would have to be called to discuss the issue of price rise of articles supplied from the ration shops. He said the Centre had taken the decision unilaterally although it was certain that the States could not bear the additional financial burden. The Centre had taken the decision at a time when discussions were going for devolution of more powers to the States. The Centre had created a very critical situation in the country. Mr. Naidu has written a letter to the Prime Minister Atal Behari Vajpayee requesting him to rescind the Government decision. He also feared the Government measure would also cause rise in prices of essential commodities in the open market. Despite drawing a very gloomy picture of the price situation, Mr. Naidu did not give any hint of his party withdrawing supporting from the BJP-led government.

Demanding reconsideration of the Centre's decision, the Tamil Nadu Chief Minister, Mr. M. Karunanidhi said it would have deleterious effect on the State's exchequer as they will have to bear additional financial burden. The Kerala Assembly also adopted an all-party resolution calling for withdrawal of the government decision. Chief Minister, E.K. Nayanar said that the Centre's decision would result in an all round increase in prices of all commodities. The beneficiary of the government measure would be a monopoly trader. The Left Democratic Front Government, he said, had asked the Centre early this months that if the Centre decided to increase the prices it should consult the State government beforehand. The Punjab Chief Minister, Mr. Prakash Singh Badal also demanded of the Centre to immediately withdraw the order effecting price rise. He also said that the rise in urea fertilizer price would also severely affect the farmers. The Maharastra Chief Minister, Mr. Manohar Joshi, also said that he did not agree with the Centre's decision. Interestingly, the BJP-Shiv Sena government in Maharastra had promised that there would be no price rise of rice, wheat sugar and oil in five years. The State, Mr. Joshi said, would demand of the centre Rs. 22 crores which would be required to fulfil its promise to the electorate. The Lok Dal which also supports the BJP led-government at the Centre demanded the withdrawal of Centre's order immediately. Mr. Om Prakesh Chautala, Lok Dal leader also hinted at withdrawing support to the Central government if it failed to rescind the order. The Congress and Rastriya Janata Dal leaders too criticised the Centre for the steep rise in prices of rice, wheat, sugar and urea.





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