Speak to any person above the age of 25 years and he would tell you that he has never seen wheat being sold in the retail market at the rate of Rs 16/17 per kg. The whole price range of foodgrains, pulses, rice and sugar has increased.

This has caused grave concern to rural labour, unemployed youth and at least 30 per cent of country's populace. This section of society is not too bothered by edible oils or sugar prices simply because they just can't afford the luxury of consuming them. But a hike in the price of salt pinches them hard.

A guard getting Rs 2000 a month or a daily wage-earner of that range is hit the hardest. Those whose salaries range between Rs 4,000 to Rs 7,000, price rise hits them in the stomach. Those who earn between Rs 8,000 to Rs 15,000 a month and calling themselves middle class people, the present degree of price rise has affected their wellness. Even the real middle class people with family earnings of Rs 16,000 to Rs 20,000 a month are hard pressed.

The UPA Government has shocked the people by increasing electricity and water charges, milk prices, road transport charges.

All of these put together have had a cascading effect. For example, the diesel price rise alone has increased transportation cost of goods.

Most newspapers have headlines against uncontrolled price rise. The media has highlighted the rate of inflation touching the 6.12 mark, much higher even in Government's estimation. P Chidambaram and Manmohan Singh are supposed to be wizards of economic and financial governance. But it is for everyone to see where they have led the country to by drastically disturbing 90 per cent of the families' home budgets.

Yet Chidambaram pointed out that in 2001 during NDA Government period the inflation rate was more than 6.12. But he forgot to mention that even in that one year the household commodity prices remained under control.

The current inflation rate has combined with unprecedented price-rise of almost all commodities and services, including steel, cement, fertilisers and pesticides.

Perhaps the only exception is telephony for which the credit largely goes to technology unleashed through policy reforms during NDA regime.

During the entire six-year NDA rule, there was no dharna or rally in any part of the country. Exceptions apart, the inflation rate hovered around three to four per cent. Those were the most satisfactory years on the price front. Atal Bihari Vajpayee mentioned on various occasions that the country had left behind the era of shortages and it is now facing the problems of plenty.

Today, the opposite is happening. We have re-entered an era of shortages. India, during the Vajpayee regime, had become the exporter of wheat, rice and sugar. Today, India is importing these items again.

The common man does not understand the term inflation. Even the wholesale market prices are misleading. The entire supply line and transportation cost impacts retail prices.

For example, urad dal's wholesale price in 2006 was Rs 3,600 per 100 kg but if one wanted to purchase 1 kg urad dal from a retail shop it would cost Rs 65. The retail price affected the family budget.

During two-and-a-half years of UPA rule, according to a friend who meticulously calculates price-increase of each commodity, the price of foodgrains has gone up from 1.5 times to double, fuel cost has gone up by 60 per cent. Though vegetable prices rise and fall according to the season but in the last two years, they have seen a steep rise with marginal decrease. The same applies to fruits.

Sugar has touched its nadir and is being sold at Rs 22 per kg. The fearsome rise in prices of edible oils has become unbearable for the common man. One litre bottle of mustard oil costs Rs 80. But these devastating facts do not get reflected in the inflation rate, wholesale prices or even in the consumer price index.

Reserve Bank of India's mechanism to curb inflation through statutory liquidity ratio and cash reserve ratio, too, do not relate directly to prices prevailing in the retail market.

What immediate relief did the Government give to the aam admi? Well, it announced the reduction of petrol products prices. The UPA Government had increased the petrol product prices on the ground that the prices of crude oil had increased in the international market.

But during the last year, the prices of crude oil in the international market have dipped to somewhere around $ 50 per barrel.

The UPA Government has turned a deaf ear towards justified wants of the aam admi. By misgovernance of economic and financial affairs the UPA Government has cheated the common man.

Courtesy: www.dailypioneer.com, January 28, 2007