With reference to the news report ‘Fuel prices may be revised post review of OMCs loss’ (September 28), the crude oil price already dropped to the lowest level since early January due to multiple reasons including global recession fears.
However, the government has so far been reluctant to pass on the benefit to consumers.
Governments world over are trying to extend the maximum fuel price reliefs to their citizens with tax cuts and subsidies.
The reasons cited for not cutting prices reasons were outstanding oil bonds, building infrastructure, inflation etc.
When international crude price increases, the government abruptly hikes local fuel prices. However, price drops are being set aside for further studies, which take time, before effecting a nominal reduction.
Girish R Edathitta
Pathanamthitta (Kerala)
The inequality puzzle
This refers to the Data Focus report “Number of India’s ultra-rich grew 11x in last decade” ( September 28). In spite of reduction in the value of assets held by the top 1 per cent Indians from 42.3 per cent in 2015 to 40.6 per cent in 2021 and in Gini coefficient from 83.3 per cent to 82.3 per cent during the same period, still 75 per cent adults own less than $10,000 as against 18 per cent in China.
Besides while India is home to 4,910 Ultra High Net Worth (UNHW) individuals, vis-a-vis China’s 32,710 . So there is a striking contrast between democratic India and Communist China with the latter claiming a more equitable distribution of wealth.
And it will be interesting to know how many of the ultra-rich in India spend their wealth on philanthropic activities beyond the CSR mandate.
YG Chouksey
Pune
The inflation conundrum
The editorial page piece ‘RBI has a grip on inflation’ (September 28) stands far above the ground realities and flies on a lot of hypothetical illogical conclusions.
A simple glance on Figure-1 will tell that during the pre-war period, the change in inflation in the country was less than zero, close to minus two. Figure 2 says that after the war it was plus 1.49 percentage points.
So the statement in the article that “India’s money supply grew by 12.47 per cent, and inflation declined by 1.49 percentage points” is incorrect.
One can straight away go to the last paragraph of the article taking two caveats, the first of which states that “we cannot precisely disentangle the demand and supply side impacts”. Demand pressure will come only when the common man has surplus income to spend after meeting the essentials.
PD Sankaranarayanan
Kumaramputhur PO (Kerala)
Target beneficiaries
Apropos the Editorial ‘Sticky situation’ (September 28), in the background of reduction of rice output during Kharif season and the challenges of procurement of wheat, it is important to fine-tune the targeting of the beneficiaries under PMGKY which currently gives free foodgrains to 80 crore people.
It is essential that targeting of beneficiaries by various Central Schemes should bear similar criteria. For example, Ayushman Bharat PMJAY targets 10 crore families (50 crore people) based on SECC data.
If we align PMGKY criteria in a similar way, targeting would be sharper and leakages lower and would also ensure fortifying buffer stocks to meet future contingencies or emergencies. It is time this is addressed.
Girija Kumar
Chennai