What has happened to Manmohan Singh's claim to control price hike of essential commodities within 100 days?

~ Addressing the press in Mumbai on April 25, 2009, Dr Singh had promised that, if voted back to power, within 100 days he would roll out an action plan to revive the economy





When did the 100 days begin and when were they likely to end?





~ More so, in the last 100 days, under an economist PM, we have seen a spectre of zero or negative inflation while the prices of essential commodities went through the roof! Forget the common man, it even dumbfounded the students of economics.





Even the poor middle class is unhappy paying more for their colas and chips. But not to worry, by the time the t20 world cup comes along, they will forget it all!





~ The country is hungry. The poor are struggling to stay alive. The crops have failed.





Again I am asking ';When did the 100 days begin and when were they likely to end?';What has happened to Manmohan Singh's claim to control price hike of essential commodities within 100 days?
You have a very good question, and if you would not have closed your last question, I wanted to answer the question at that time itself.





Let me start it this way. This is what I think and this is has an order, so please read it from top to end.





Part 1:





Union Government failed at this promise drastically. Some reasons I described in last question, and my very good friend Raj Kish added some more. And I also mentioned some solutions coming from my small brain. And the government is being run by eminent people. Thus they can definitely think much better than me. And if they cannot resolve resolve these issues, then I must only say, government failed on this promise.





Part 2:





Government tried to mitigate the price rise, the success rate is very low. And for the low income group and lower middle income group almost none.





1. Rate of Interest: Rate of interest has been reduced by government, so that small business owners can get loans at lower rates. But this benefit did not reach the end customer.





Interest of on Housing Loan: This is also reduced, but when we do not have money to buy essential commodities, where are we going to buy house. Eventually the two sections that I mentioned above are not at all benefitted.





2. Loan waiver for farmers: This was targeted to benefit the farmers, but the farmers that have taken loans from the private lenders did not get benefited. I do not think government can do much about this. But the biggest problem in this scheme was our system, at many places the money did not reach the right people, but did benefit the people.





3. The new tax code: This is to be implemented from tax year 2010-2011, with this tax code, tax payers have to pay lot less taxes. This will specially reduce the taxes for low middle income group and middle income group.





http://in.answers.yahoo.com/question/ind鈥?/a>





This will increase the net earning of the individuals. But this is not yet implemented. And would not help the people who do not fall in the tax income bracket.





Part 3:





MY FRUSTRATION





All the mitigation strategies are kind of stimulates packages except last one and that are going to only increase budget deficit. As I mentioned in my last question, I expect the solution today, I do not want my burden to carried by my coming generations.





I am not going to make any comparison, I am not going to pass any sarcastic remarks, because by qualification I am PG in economics, and I understand why Price Rise are happening. The thing that disappoints the most is, I am not seeing anything that can cure it, I am seeing efforts to mitigate it ( they they are doing little or almost nothing).





Part 4:





My opinion on what should be done today:





I mentioned some suggestions in my last answer, I am going to repeat them and going to add more.





--- The back bone of Indian economy was and is Agriculture. And I would put it this way, the back bone of India is Agriculture. And before I make my suggestions, let me tell a very small story:





When Mr. Amithabh Bachchan's ABCL Ltd failed, and he has a series of flop movies, he was about to lose his house, he went to Mr. Dhiru Bhai Ambani and asked him,





you are a successful man, you are every where today from no where, and look at me what happened to me, what is your advice for me?





Mr. Ambani replied, what do you know? What is your core strength?





Mr. Bachchan replied Acting.





Mr Ambani replied, then concentrate first on Acting.





After coming from Mr. Ambani's house, Mr. Bachchan signed KBC and rest is the story all know.





India's strength is not only in agriculture but India's need is agriculture. And for agriculture, even after 62 years, we depend on rain.





-- If it rains less, our crop spoils


-- If it rains more, our crop spoils.





This is what huts me. We paid lot of attention on IT, we paid lot attention on telecommunication, we paid lot of attention on infrastructure, we paid lot of attention in energy, we paid lot of attention in showing India as Global Power, but the basic thing, Agriculture is still the same as it was in 1970 where Mr. Lal Bahadur Shastri and Smt Indira Gandhi left it.





We need alternate source for irrigation, other than monsoon, we cannot be dependent on rain for agriculture.





Second thing that we need, is we permanent Green Revolution, we as agriculture country, do not need HARIT KRANTI for a term or two and then let the agriculture and farmers in a mess, we need permanent Green Revolution.





I have several other points to make, like middle man, small land lords big land lords, government control on essential commodities, but I don't think if I keep writing anyone is going to read it. Answer is already too long and I think I have kept my most important point that is, I think in order to keep price control first of all we have to give first importance to agriculture.





@Thanks Ratnesh Singh.


@Truth, You have to understand every question is not Congress Vs. Non-Congress fight. And I am answering you this as last edit on this question, please post your answer related to the question, I think we should be concerned when a serious issue raised. If it is a politics question, I more than happy to argue, not on a serious issue.





2008-2009, Indian economy growth rate fell to 6.7% and in May 09 it was reported as 5.8%. This is impact of Global recession.





When economy slow down happens in any nation, the first thing that happens is the cost goes up. And there are various factors behind that, and most contributing factors are profit making middlemen.





Due to Global recession both export and import was declined by both Indian exports and imports declined by 29.2% and 39.2% respectively in June 2009 for YTD and this includes agriculture products.





If a bad system existed from 15th century that does not mean that it should be abolished today. And those are in the jurisdiction of state and states are responsible.





The farmers who got there loan waved off, they could proceed with the next crop, and that is very simple to understand fact.





Rate of Interests: I am sorry, may be you don't bank in India. I was talking about Indian banks only.





And India is not one of the biggest exporters, USA, France, China, Canada top the list in agricultural export as per WTO. India is not in top 6 for sure, I don't know where does it rank.





****Final Edit: I had decided last edit as the final one, but I want to add one more suggestion that may help easing and controlling the price of essential goods, though it has its own demerits too, and that is organized retail sector. An organized retail sector would reduce or eliminate the middlemen and should ideally drastically reduce the cost, in India we have seen just opposite of this and that is because currently the organized retail sector works mainly for upper middle class and only has limited presence. But if this sector is improved this can help significantly. I am running short of space else I would have explained how, but users who are familiar with US retail market would well understand what I am talking about. That sounds unrealistic today in India but realistic future.What has happened to Manmohan Singh's claim to control price hike of essential commodities within 100 days?
BhAraT sory Victor, the Congress Govt. is very keen and very particular to reduce the prices with in 100 days. That is why they have written ';To reduce the prices with in 100 days'; on the bed room wall so that they do not forget it. Every day when they get up they are finding 100 days .... on the wall and they are feeling that they got still 100 days time. The 100 days will never end untill they paint the wall.
Since election is far away so AAM ADMi is not in the Radar of congress for now at least.





Practically they have not taken a single measure to curb the price rise,just looking at the God to rain good in next season.





Also one more thing PM is now a days busy in his new found fascination of handling India's foreign affair(Perhaps taking a clue from his past predecessor Mr. vajpayee), so parnab da is looking at it for now ,and what he is doing accept showing tantrums and anger to opposition is yet to be seen.
If an extensive search of price hikes and its relation with the congress govt.in power at the centre is done, then it will sure prove that whenever there was congress party in power at the centre, people have had to face price hikes of all essential commodities.
@MS.... Iam replying this just for u, plz don think that no body reads all the answers, i really loved ur ans. and hope we start thinking (in real sense) about the devlopment of agriculture, our backbone. And as for the ans to d quest. the 100 days will begin just before the next general elections.
Sorry, sometimes manmohanji spoke as RBI Governor unknowingly he is a pawn belongs to Sonia Congress. Take it as Joke, and keep half stomach empty.
May be still working on it. The 100 days may start any moment... better watch out. Suddenly one day everything will be free of cost
when will these foreigners learn that serious, thoughtful questions are strictly prohibited here at Y!A
you took that literally ?





any way it was better then bjp's promissorys
Must have something to do with his rash...
This 100 days will begin just before the next election till than listen and read new statements every day and keep quite ! You have no right to say anything because people of India have not given clear cut verdict to any political party.These opportunist and corrupt gang have made a deal with each other to suck the India by all means,they will accumulate as much of wealth as they can it will helpful to fight next election than again new story will be presented to you.





See how Madhu Koda have did the corruption with support of Congress and he used this money to get more seats in next election.Congress understand it and collected the proofs that will be use to fix Koda to form next government in Jharkhand as like Laloo ,Mulayam and Mayawati fixed and used by Congress.





Our GREAT ECONOMIST PM did not have the knowledge ';how to control the prices of essential commodities';.He is so innocent and fair he does not have any hand and responsibility of this price hike to unbelievable level,people are claiming that he is so faithful and honest person with so many degrees and experiences ! It is not wonder that he uses his all capabilities for just one family rather than the country and common man of this country ?





After all these facts he is leader of corrupt gang ,how can you or any body says that he is honest and fair person ?We have not seen what happened at the time of confidence motion on Nuclear deal with US ?But still people are claiming he is clean person without any corruption ! Than how much corruption he will impose on country than he will tag with corrupt person ?He have forget all the ethics,moral values and soul of constitution for just PM seat !Who will bigger corrupt than him ?He feel any shame toward the common man of India ?His all the abilities and knowledge are for the only one family who have given him the PM seat,It is biggest corruption with the Nation and constitution.





In another question in this forum one person have asked that Manmohan Singh is leader or politician, many answers stated that he is great person !What a great person who have corrupted and raped our constitution.





Keep quite up to next election,before the election his gang will come with new promises and will beg you for the vote till than have some sweet dreams of 100 days plans.





EDIT :-





JUST READ IT,IT WILL SHOW YOU ALL GAMES BEHIND PRICE RISES :-





http://khabar.josh18.com/news/19092/1
The irony is that when it comes to recession this govt claims that Indian Economy has been unaffected or not as badly affected as other nations and when it comes to commodity prices they say that this is the international phenomenon so basically they just want to shake their hands off from this responsibility, but the fact is that these two GREAT ECONOMISTS MMS and PC have failed or are not interested to do anything on this, they just want to misguide the general public with growth figures.
100 days will be counted from the day,Mother Sonia commits to control the prices of essential commodoties and will end on the day when she declares that the prices of essential goods have come down through report on media irrespective of the duration and actual price in the market.
Govt is totally responsible for Price rise so why will they make any efforts to bring down the rates of the commodities.


Reasons:


1)Exporting crops without short term or long-term measures.It shows how concerned is Congress about aam aadmi.





2)Even after drought was hit,our govt continued exporting.





3)No measures are taken by govt ,so the measures taken by govt is not known.Only to comment they say all they are trying to bring down the prices.You can say only agr fate will decide.





4)Tonnes of crops are destroyed in govt godowns FCI.What is govt doing ?nothing





4)Private players have free hands, buying directly from farmers and govt has not acted on it.





5)Once India was known for exporting but now it is coming to be known for importing crops.





All these for only one year of drought ?This is mismanagement of govt and Congress is fully responsible for price rise. Congress led UPA has made India from self-reliable to dependent nation.Even though international prices is reducing our country prices is hitting the sky.With Congress rule comes Licence Raj by default.





Yes day 1 will start only before 150 days of pre-election and ends 50 days before pre-election so that it can highlight vote bank achievements for campaigning.





@MS





Global Recession had little impact on India.Apart from that India is one of the biggest exporters of food grains and ores.As you said Indian economy is dependent on agriculture,so food commodities especially in India should be low.





MS can you please explain how is price rise in food commodities, iron and steel in India related to Global Recession?As far as I know export industries were greatly effected by recession in India.





Effected by Late Monsoon ?What were short term and long term measures taken by the govt.





Bad Distribution System and middlemen are the last things


you should complain about,this existed since Indira period.You are blaming only states for price rise ?Great





Rate of Interest and Interest of on Housing Loan reduced? I cannot see it.


New tax code: Really waiting to see if it is implemented.





Loan waiver for farmers ?How is it helping anyone ?It is like providing Ganga jal before dying.


Farmer again has to depend on loan for the next year.This was a vote bank policy by Congress during elections.