Press Statement issued by Shri Rajiv Pratap Rudy,
National Spokesperson, BJP

The BJP categorically states that all the steps being taken by the Cabinet Committee on Prices to rein the walloping inflation that has already reached a whopping 6.68%, is nothing but mere patch work. It is worth noting that the prices of all individual key food commodities have risen in double digits as compared to the Wholesale Price Index (WPI). The enormity of the problem cannot get addressed by merely lowering certain customs tariff. The absence of any long term measures to soothe the inflationary trends is only a knee jerk approach to solving the problem, and this also amply reflects the fudged economic disarray of the UPA government. The government’s hollow claim that inflation has much to do with soaring prices at the international level, and thereby compelling India to import it, is an unacceptable and outlandish alibi. If the assertion is true, then the Government should also admit that the much arrogated 9% growth was also an imported phenomenon and had nothing to do with either the UPA’s hype or its policies.

Just a day after the meeting of the CCP, it is noteworthy that prices of cement have been raised upto five rupees on a 50 Kg bag. Simultaneously oil companies have hiked the jet fuel prices by 14%. While rise of the WPI has been attributed to rise in prices of basic metals, the Railway Ministry has revised the classification of transported iron ore to a higher category and in the process effected a cost hike of 5.6 % on transportation of iron ore. On the other hand, the steel industry is being coerced to cut prices without any effective policy support on the ground. All these clearly reflect yet another classic example of the UPA government’s style of functioning where the left arm does not know what the right arm is doing! This also vindicates the BJP’s stand that the country has a paralyzed and dysfunctional Prime Minister whose acknowledged status as an economist of international repute is now at a point of becoming questionable in the eyes of the common man.

The BJP would like to point out that the prices of edible oil did not shoot overnight and it has been consistently spiraling upwards over last few months. Would the UPA Government like to explain its slumbered response on lowering of duty on refined and zero duty on crude edible? Why did the government fail to ensure stock optimization by NAFED, STC etc. and take a lead to provision a supply through Public Distribution System? The UPA must answer why stockpiles of wheat and rice as claimed by the FCI are not being released to soften the impact of the whopping price of staple food items? On the contrary, the government is now advising the states to import wheat from the international market on their own. More so, while the wheat harvest is to hit the market in a fortnight why is the government not coming forth with an attractive remunerative procurement price to kill the already inflationary trends in the market?

In absence of any coherent response to handle inflation, the Congress leaders are coming forth with absurd logics and knee jerk reactions. Mr. Moily blames the Olympics in China for high prices of Steel and Cement in India while Mr. Digvijay Singh accuses all the states across the country of indulging in hoarding and black marketing. Over and above this, he claims that the Sixth Pay Commission would impact the inflationary trend dousing the spirit of restless employees who are already reeling under heavy bout of price burden and are unhappy with the recommendations. The panic ridden and discordant response by the Congress led UPA Government at the centre shall in no way absolve either acclaimed reputations of either the Economist Prime Minister or the Finance Minister. Both of them have been fully aware of the ground realities and enormity of the problem and have even spoken about the impending inflation catastrophe, which has struck the nation. The BJP charges that the current situation cannot be treated as a mere accident and the Congress led UPA government shall have to answer tough questions on the complete and gross economic mismanagement of the country before the people.

(Shyam Jaju)
Office Incharge