AT PRESENT PRICES OF ALL COMMODITIES INCLUDING ESSENTIAL COMMODITIES, VEGETABLES, EATABLES, GRAINS, ALL OTHER CONSUMER GOODS STARTED INCREASING DUE TO SHORTAGE OF SUPPLY ACCORDING REQUIREMENT OF DEMAND FROM THE CONSUMERS. HENCE THERE SHOULD BE EFFECTIVE MECHANISM TO CONTROL THE PRICES INCREASE AND AGAINST ARTIFICIAL SHORTAGES DUE TO HOARDING OF STOCKS.WHICH BECAME MORE PROFITABLE THAN MANUFACTURING.
1. PETROLEUM PRODUCTS:
THE CENTRAL GOVT. PROPOSED TO ENHACNE THE PETROLEUM PRODUCTS PRICES TO REDUCE LOSSES TO THE PETROLEUM COMPANIES DUE TO CHANGES IN FOREIGN EXCHANGE RATES, RATES IN INTERNATIONAL MARKETS. THE LOSSES ARE NOT FULLY ELIMINATED WITH THIS INCREASE. IT MEANS THAT THERE IS FURTHER ENHANCEMENT PROPOSAL. FURTHER IT IS STATED THAT THE PRICES WILL FLUCTUATE ACCORDING TO INTERNATIIONAL MARKET CONDITIONS AND FOEIGN EXCHANGE RATES.
ALTERNATIVELY, THE PRICES CAN BE REDUCED IF THE STATE GOVT.S REDUCES ITS TAX RATES BASED ON QUATITY BUT NOT ON PERCENTAGE OF PRICES. EX: THE INCREASE OF Rs.3 PER LITRE INCREASSED THE RETAIL PRICE BY RS.4 DUE TO LEVY OF STATE GOVT. TAX. IT MEANS INDIRECTLY THE STATE GOVT. IS BENEFITTED BY THE PRICE INCREASE WHICH IS HIDDEN COST TO CONSUMERS. THEREFORE THERE SHOULD BE A RELATION BETEWEEN “COST PRICE” AND “CONSUMER PRICE”. IT IS ADVISABLE THAT THE MARKET RETAIL PRICES SHOULD NOT CONTAIN MORE THAN A PARTICULAR PERCENTAGE TOWARDS TAXES.
2. ESSENTIAL COMMODITIES:
THE PRICES OF ESSENTIAL COMMODITIES ARE GOVERNED BY DEMAND AND SUPPLY IN THE MARKET. THE SUPPLY RESTRICTED BY DEFECTS IN SUPPLY CHAIN, HOARDING, STORAGE ETC., THE FINANCIAL INSTITUIONS ARE LENDING MORE AND MORE TO TRADERS WHO INTURN USING THE FUNDS TO MOBILISE MORE AND MORE STOCKS AND STORE FOR GOOD PRICES AFTER THE END OF THE SEASON. HENCE THE FARMER IS NOT GETTING THE GOOD PRICES AND THE CONSUMER IS ALSO FORCED TO PAY HIGH PRICE SINCE THERE IS NO ALTERNATIVE.
IT STATED THE PURCHASING POWER OF THE CONSUMER IS INCRREASED WHICH IS NOT COREECT, BUT THERE IS NO ALTERNATIVE TO THE CONSUMER EXCEPT TO POSTPONE OR DEFER OTHER EXPENDITURE AND TO USE FOR ESSEN TIAL COMMODITIES.
