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Wednesday, September 26, 2012

Short Rejoinder to Amit Mitra on Diesel Price Hike, FDI and LPG

Short Rejoinder to Amit Mitra on Diesel Price Hike, FDI and LPG


Dear Shri Amit Mitra,


It is obvious opposition has a policy to Create All Kinds of problems Ethical & Unethical to oppose any GOI program in India but as ex CEO of FICCI you fully understand that all the decision or proposals of FICCI never benefited all the people – Rich became Super Rich and Poor became Super Poor in relative term. You can't design a policy which is equally good for everyone.


Tou know that and I think FDI in retail shall benefit POORER states and people – Walmarts are for Common People and mainly retail 'Unbranded or Unknown Brands but all of Good Quality Products'– Rich go to Malls.


I liked the way Rajdeep was crashing in to your stand.


WB is around Rs.5,00,000 crore Economy and a 10 crore state – bigger than any EU country.


I have found Agriculture Contributes significantly engage over 70m in WB depend on Agriculture –


But I can't believe WB never Demanded say Rs.1600-2000 per Qtl MSP for Paddy or Inclusion of Potato in PDS system and procured at MSP of Rs.500 per bag when WB is leading Potato producer.


Thus you can improve their Farmers Earnings and Labor wages.


WB should be focusing on its Own Development Agenda rather that Encountering your own alliance partner UPA government.


I partly tend to disagree with above decisions – I wanted Diesel for Cars to charged at Rs.70 per kg like all over the world and provide subsidized Diesel to Agriculture, Transport sectors.


I expected WB to oppose Tax Concessions of Rs.5,00,000 crores to Industry that now benefit few families.


1. LPG – LPG cost around Rs.35 per kg (Rs.420/12 accounting for pilferage) when power grade cost less than Rs.1.2/kg at pitheads.


Going by your argument of 12 cylinders or 1 cylinder or – you mean 400 gm per day which huge – Spending Rs.14 per day.


An LPG burner consumes 65gm/hr to 80gm/hr – this means 5-6 hours of cooking.


I found out women in the absence of Refrigerators Boil Milk every few hours and Foods to keep it safe. In village this is avoided by milking cattle 2-3 times a day. In towns and cities for poor Milk could be delivered in smaller packing 2-3 times a day. 


Electricity is cheaper in coal pithead states.


Electric Rice cookers or Electric Hot Plates are highly Efficient.


You didn't insist on BAN on LPG (& CNG in some states) use to run cars. 


2. Yesterday a group of small shop owners were discussing FDI and I joined in and they all believe FDI shall hurt Big Traders at Azadpur & Sadar Bazaar who 'Manipulate Food and Commodity Prices'.


FDI in retail will only hurt such Big Middlemen not the small traders.


3. Diesel – I have already said we should charge Rs.70 per liter from Diesel Car owners than increase of Rs.5 for all consumers.


Finally WB should have requisitioned more 20% LPG connections and 20% higher allocation of Kerosene to compensate for lower LPG allocation at normal rates.


Presently LPG users don't get Kerosene – you could have insisted on 5 liters of Kerosene per month for LPG using 5plus member family.


Conclusions –


WB should focus of internal Economic Issues.


WB should adopt 'Partnership Approach at Center' and at Center Work as Integral Part of Government.


WB a poor state is HURT MOST by traders and middlemen.


WB like USA should introduce 5000 farmers market to directly sell farm produce to Consumers.


Thank you & regards,


Ravinder Singh


September19, 2012

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