H C Singh

Economic Crisis

There is continuous rise in prices of essential food products like rice wheat, pulses and sugar. Sugar stocks are so low that the imported sager will make the sugar for common man costlier. Sugar prices are likely to be all time high crossing Rs 40 and climbing to Rs 50 a Kg compared to around Rs 30 per kgbefore crisis and import. With increase in the price of sugar by 30% or so all types of sweets, during festival season, will be offered at double the price. This will hurt common man, though Government is thinking of supplying 2 Kg sugar to each family below poverty line. But the type of economic and social structure that we have it is doubtful whether even 10% families below poverty line will actually get the 2 kg sugar at existing price or with subsidy.

As total sugar requirement of the country is 23 million tonners while indigenous production during 2009-10 is to be 15 million tonners. It means India will be imparting during current year 8 to 10 million tonnes of sugar. Besides burden on consumers it will be burden on India’s financial economy which will be becoming budget deficit further.

In addition to sugar, because of draught in almost half of India, prices of other edible commodities will also rise.

September 17, 2009 - Posted by | India | , , , ,

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