Monsoon forecast

With globe climate models indicating a weakening of current El Nino conditions and ‘positive’ Indian Ocean Dipole conditions, the India Meteorological Department (IMD) has forecast an “above normal” South-West monsoon this year.

Given the inextricable link between a good monsoon and economic growth, such a forecast does augur well for the country’s economy. Also, a good monsoon could increase reservoir levels and boost hydroelectric power generation, besides ensuring the availability of drinking water. Since the farm sector employs nearly 46 per cent of the country’s workforce, a second consecutive not-so-good monsoon could wreak havoc on already stressed rural incomes and consumption. If the country has a good monsoon, it will ensure a bumper kharif harvest about six months from now and help the government ward off food inflation to a greater extent.

M Jeyaram

Sholavandan, TN

GST on Malabar parota

The ruling of the Kerala High Court that the popular flat bread (Malabar parota) will attract GST at 5 per cent and not 18 per cent is welcome. From the consumers’ point of view, all goods are final goods. Hence, lessening GST on single use consumer goods will benefit the people in general and the poor in particular. Malabar parota, for instance, is a popular consumer good, albeit it may require a little more effort for readying it for final consumption. Consumers will be immensely benefited by the verdict as they need not shell out extra GST (an indirect tax) on the commodity. This essentially means that they could save considerable nominal income in the purchase of it.

S Ramakrishnasayee

Chennai

Tax treaty

This refers to ‘Capital move’ (April 17). It is indeed a positive development for those aiming to avoid tax. However, there is a need for clarification regarding the differences between the Principal Purpose Test (PPT) and the proposed article 27B, as the distinction seems subtle. Failure to address this could result in legal disputes, particularly concerning the Vodafone double taxation issue and Mauritius, stemming from the capital gains tax dispute related to Vodafone’s acquisition of Hutchison Essar in India in 2007, which significantly impacted the Indian tax system.

Srinivasan Velamur

Chennai

Pulses production

Apropos ‘Pulses need a production boost’ (April 17), it is unfortunate that pulses, the essential protein providers, are slowly disappearing from poor people’s diet. This doesn’t augur well for the health of the nation and its development. There are several reasons for the fall in pulses production in the country. Expanding irrigation facilities have changed the cropping patterns and pulses cultivation has been replaced by rice and wheat. Further, soyabean, an import from South America, has been promoted so aggressively that it has replaced pulses cultivation over a large area, due to better income realisations. There is a need to promote the cultivation of pulses on a mission mode.

Kosaraju Chandramouli

Hyderabad