Month: November 2021

Centre Invites Five Farmer Leaders To Be Part of Panel To Discuss MSP, Other Issues

The Samyukt Kisan Morcha said it has not decided who will be recommended to be part of the committee and a decision will be taken at its meeting on December 4.

New Delhi: The Union government has asked for five names from the Samkyukt Kisan Morcha (SKM) to be included in a committee that will deliberate a host of issues, the umbrella body of farmer unions said on Tuesday.

SKM has not decided who will be recommended and a decision will be taken at its meeting on December 4, farmer leader Darshan Pal told news agency PTI.

Earlier this month, Prime Minister Narendra Modi had announced that a committee would be formed to take decisions on the subjects of promoting zero budgeting-based agriculture, changing crop patterns as per the changing needs of the country, and making minimum support price (MSP) more effective and transparent.

He announced this during his address to the nation in which he also stated that the government has decided to repeal the three farm laws, which were at the centre of protests by farmers for the past year.

The prime minister had said the committee will have representatives from the Union and state governments, farmers, agricultural scientists and agricultural economists.

On Monday, both houses of parliament passed the Bill to repeal the three contentious farm laws.

“Today, the Union government has asked for five names from SKM for the committee that will deliberate on the issue of minimum support price for crops. We have not yet decided on the names. We will decide in our December 4 meeting,” Pal told PTI.

In a statement on Tuesday, the SKM clarified that the meeting to discuss the pending demands and to decide the future course of the farmers’ movement will be held on December 4 instead of Wednesday.

The SKM, an umbrella body of over 40 farm unions, has been spearheading the farmers’ movement against the three farm laws and their other demands, including a legal guarantee for MSP.

On Monday, representatives of farmer unions of Punjab had said an emergency meeting of the SKM has been called on Wednesday to decide the future course of action.

The SKM, however, clarified, “All constituent organisations of SKM will take stock of the situation and decide the next steps of the farmers’ struggle on December 4, as announced earlier. The date of this SKM meeting remains unchanged.”

It said the meeting will take place at the Singhu border. Various points raised in the letter to the prime minister earlier will be discussed and future decisions will be taken.

Farmer unions from Haryana will convene a meeting on Wednesday to discuss pending demands and other issues, the statement said.

SKM has demanded that the Union government provide a concrete response to redress their pending demands. “Vague statements (by government leaders) here and there as a response to the pending demands of protesting farmers are not an acceptable response or assurance from the BJP government. SKM seeks solid assurances on and concrete redressal of the pending demands,” it said in the statement.

It highlighted Haryana chief minister Manohar Lal Khattar’s statement that he will act on the instructions of the Union government when it comes to withdrawal of cases “filed against around 48,000 farmers” in the state.

SKM also condemned the way the Objects and Reasons for the Farm Laws Repeal Bill were articulated by the Union government.

The body also slammed the Union government for listing the Electricity Amendments Bill, 2021 for business in the ongoing parliament session, describing it as an “outright reneging” on the commitment made by the government to the delegation of farm unions in December last year.

“Similar is the case of penalising farmers for biomass burning in relation to Delhi’s air pollution. SKM states that with such manifestations of unreliable behaviour, it is completely obvious why the farm unions will not trust the Government of India on any verbal assurances,” SKM said in the statement.

It further said that SKM’s demand for Union minister Ajay Mishra Teni’s arrest and sacking from the central government is still pending. Mishra’s son Ashish has been arrested in connection with the Lakhimpur-Kheri violence, in which four farmers were allegedly mown down by his convoy.

Govt Says Syllabus Outline Drafted To Integrate ‘Ayush Knowledge’ Into School Curriculum

The outline was sent to the Department of School Education and Literacy, the Rajya Sabha was told on Tuesday.

New Delhi: A team of experts from the National Institute of Ayurveda, a deemed-to-be university, has drafted an outline of syllabus based on Ayurveda and Yoga for students from nursery to Class XII and it has been sent to the Department of School Education and Literacy, the Rajya Sabha was told on Tuesday.

In a written reply to a question on whether the government has any plans to integrate AYUSH knowledge into the curriculum right from the school level, AYUSH minister Sarbananda Sonowal said, “Yes, the Implementation Committee of National Education Policy, 2020 formed by the Department of Higher Education includes experts from the Ministry of AYUSH.”

“As per the meeting held on July 19, 2021, of the Implementation Committee, an action taken report has been shared by the Ministry of Ayush regarding inputs for implementation of New Education Policy,” he said.

“Further, a team of experts from the National Institute of Ayurveda (NIA), a deemed-to-be university under De-novo category, has drafted an outline of syllabus based on Ayurveda and Yoga for schoolchildren from 1st to 10/12th standard including Nursery, LKG and UKG levels which has been sent to the Department of School Education and Literacy,” Sonowal said.

On whether the government has developed an immunity-boosting kit to protect children up to the age of 16 from COVID-19 until a vaccine is available for them, the minister said the All India Institute of Ayurveda (AIIA) has developed an immunity-boosting ‘Bala Raksha Kit’ for children in this age group.

This kit has been made under the strict guidelines of the Ministry of AYUSH. It fights common infections and keeps children healthy. The kit comprises Syrup Bal Ayu Raksha Kwatha (consisting base) that has medicinal qualities, apart from Anu Oil, Samshamani Vati and Chywanprash, Sonowal said.

It has been manufactured by Indian Medicines Pharmaceutical Corporation Limited, a government of India enterprise, at its Uttrakhand-based plant, he said.

Union Government Constitutes Panel To Revisit Criteria To Determine EWS Category

The committee members are former finance secretary Ajay Bhushan Pandey, V.K. Malhotra and principal economic advisor to the government Sanjay Sanyal.

New Delhi: The Union government has constituted a three-member committee to revisit the criteria to determine the economically weaker sections (EWS) for reservation in employment and education, headed by former finance secretary Ajay Bhushan Pandey.

The government had informed the Supreme Court last week that it has taken a considered decision to revisit the criteria. The move came after the top court grilled the government on how it had arrived at Rs 8 lakh annual income as the limit for inclusion in the EWS category, saying numbers cannot be pulled out of thin air and must be based on scientific methods.

The court was hearing a challenge to the Union government’s notification granting 27% reservation for the other backward classes (OBCs) and 10% for the EWS category in post-graduate medical courses.

According to news agency PTI, the social justice and empowerment ministry issued an official memorandum on Tuesday constituting the committee in accordance with the commitment given to the Supreme Court to revisit the criteria for determining the economically weaker sections (EWS) in terms of the provisions of the explanation to Article 15 of the constitution.

The committee will revisit the criterion to determine the EWS category keeping in view the observations of the Supreme Court. It will also examine various approaches so far followed in the country for identifying economically weaker sections and recommend criteria that may be adopted for identifying the EWS category in future, the memorandum said.

The committee members are former finance secretary Ajay Bhushan Pandey, member secretary of the Indian Council of Social Science Research (ICSSR) V.K. Malhotra and principal economic advisor to the government Sanjay Sanyal.

The committee has been asked to complete its work within three weeks. The government had informed the top court that it would require four weeks to complete the exercise. Accordingly, counselling for PG-NEET, the post-graduate medical course entrance exam, was postponed by four weeks.

(With PTI inputs)

Uttarakhand Government Bows to Priests’ Protest, to Scrap Char Dham Devasthanam Board

The state government had been on the back foot over the issue in the poll bound state.

Dehradun: Close on the heels of parliament repealing the three farm laws, the Uttarakhand government on Tuesday said it would scrap the Devasthanam Board which has drawn flak from the priests of Char Dham shrines.

Chief minister Pushkar Singh Dhami said that after studying all the aspects pointed out by the high-power committee headed by senior BJP leader Manohar Kant Dhyani, his government has decided to withdraw the Chardham Devasthanam Board Act (CDBA). “In my last meeting with the priest community in Kedarnath, I had promised that by November 30 the issue would be sorted, and it has been settled today,” he said.

The CM’s announcement is significant since it comes ahead of Prime Minister Narendra Modi’s scheduled visit to Dehradun on December 4. The development should also be seen in the context of the hill state going to polls early next year.

The state government had been on the back foot over the issue because the protest by the agitating priests kept escalating. Ahead of Modi’s visit to Kedarnath earlier this month, the local priests had even stopped former CM Trivendra Singh Rawat from entering the temple. Senior BJP leaders Madan Kaushik and cabinet minister Dhan Singh Rawat were heckled.

Interestingly, the CDBA was conceptualised by Rawat in 2019 to overhaul the management of 51 temples, including Kedarnath, Badrinath, Gangotri, Yamunotri which were under the control of the local priest community. The move had irked the priest community which termed it as an “anti-Hindu” decision of the state government. The priests also claimed that the board existed to make industrialists money at their expense.

But unfazed by the clamouring of the priest community, Rawat oversaw the enactment of the CDBA to take over the management of all temples.

In July 2020, BJP Rajya Sabha MP Subramanian Swamy moved public interest litigation (PIL) against the Devasthanam Board in the Nainital high court. The court dismissed the petition.

Priests welcome reversal

The priest community has welcomed the state government’s reversal, hailing the decision to restore “Hindu tradition and rituals”.

A Gangotri-based priest Rajnikant Semwal said, “From day one, we have been asking why if the state government has no control over the management of churches or mosques, it is pushing hard to take over temples. The state government must focus on paying the salaries of transport corporation employees, Garhwal Mandal Vikas Nigam and other departments instead of taking over the Char Dham.”

Another priest, Suresh Semwal, said that the conditions of the Devasthanam Board were against the traditional Hindu traditions and rituals that had been followed since the age of Shankaracharya in Char Dham. “The state government had wanted IAS officers to run the temples, which were against the basic ethos of our religion. Everyone is indebted to CM Pushkar Singh Dhami,” he said.

Dhami’s decision does not come as a big surprise in poll-bound Uttarakhand, where the BJP is battling anti-incumbency both in the hills and plains. It is worth noting that the Char Dham priest community is not numerically strong but plays an influential role in state politics.

Dehradun-based senior journalist Pawan Lal Chand said, “The political clout of the priest community is such that the BJP cannot afford to keep them angry for long before the 2022 election battle. The CM’s announcement of scrapping the Devasthanam Board is a clear message to the [Brahmin] community just before the elections.”

Political observers say that in Uttarakhand, the priest community impacts voting in three districts: Rudraprayag, Chamoli and Uttarkashi. These districts cover eight assembly constituencies.

“If the CBDA was not repealed, then the BJP would have to politically suffer in these eight seats and also other seats in the Garhwal region in the next election, Also the CM’s decision will have a positive impact in the Gangotri seat,” said Udit Ghildyal, a social activist based in Pauri Garhwal.

Uttarakhand chief minister Pushkar Singh Dhami. Photo: Facebook/Pushkar Singh Dhami.

Political parties react

The saffron camp is upbeat. Talking to The Wire, cabinet minister Subodh Uniyal said, “The state government was appraised of the matter and the chief minister has taken the right decision. We don’t do caste politics so the question of how it would impact the election doesn’t arise. In governance, there is always a scope of course correction and we have done exactly that.”

The Congress, meanwhile, termed the CM’s announcement as the people’s victory. Speaking with The Wire, former Congress chief minister Harish Rawat said, “Behind the decision, I see a government trembling in fear of defeat in the next elections. Congress had vehemently opposed the Bill in the state assembly and supported the agitation of the priest community right from the beginning.”

Meanwhile, the Aam Aadmi Party’s chief ministerial candidate Col (Retd) Ajay Kothiyal said, “It is the victory of the priest community which had fought tooth and nail against the Devasthanam Board Act. The state government today admitted its blunder and has been forced to take back the Act.”

Veteran Telugu Film Lyricist Sirivennela Sitarama Sastry No More

Sastry died due to lung cancer-related complications. He was 66. 

Hyderabad: Veteran Telugu film lyricist ‘Sirivennela’ Sitarama Sastry, a recipient of the Padma Shri and numerous other awards, died due to lung cancer-related complications at a private hospital here on Tuesday. He was 66.

Sastry was admitted to the hospital on November 24 with pneumonia and was in the intensive care unit. He was put on ECMO to support his lungs with medical professionals closely observing his condition, the hospital said in a release.

Sastry, who has left an indelible impression on Telugu-speaking people with his magnificent songs in films like Sirivennela, Swarna Kamalam, Subha Lagnam, Rudraveena and a number of others, became popular with veteran director K.Viswanath’s film Sirivennela in 1986.

He came to be known as ‘Sirivennela’ Sitarama Sastry though his surname is Chembolu.

Since then, he has penned about 3,000 songs and bagged the Andhra Pradesh government’s Nandi award several times, besides other honours.

He formed a powerful combination with legendary playback singer S.P. Balasubrahmanyam, especially in the films of K.Viswanath.

The songs of Sastry, sung by Balasubrahmanyam, captivated the audience, be it those of the Carnatic classical music genre or peppy mass numbers.

Expressing anguish over his demise, Vice President M. Venkaiah Naidu said he was among those who admired the songs of the departed lyricist.

Sastry gave primacy to Telugu language and values in his songs, the Vice President said.

Naidu said he enquired with the doctors treating Sastry after coming to know about his ill-health and had hoped for his recovery. He conveyed his condolences to Sastry’s family members.

Union tourism and culture minister G. Kishan Reddy, Telangana chief minister K. Chandrasekhar Rao, TDP chief N. Chandrababu Naidu, actor Chiranjeevi, K. Viswanath and a number of Telugu film personalities condoled the death of Sitarama Sastry.

Indian Economy Grows 8.4% In July-September Quarter

In value terms, the GDP stood at Rs 35,73,451 crore in July-September 2021-22, higher than the Rs 35,61,530 crore in the corresponding period of the 2019-20 financial year.

New Delhi: India’s GDP growth slowed to 8.4% in the second quarter of 2021-22, mainly due to the waning low base effect but the economy has surpassed the pre-pandemic level, official data showed on Tuesday.

The GDP growth in the April-June quarter of this fiscal stood at 20.1%. The Indian economy had contracted by 24.4% in April-June last year.

The gross domestic product (GDP) had contracted by 7.4% in the corresponding July-September quarter of 2020-21, according to data released by the National Statistical Office (NSO).

The government had imposed a nationwide lockdown at the onset of the COVID-19 pandemic last year.

This year, a massive second wave of the pandemic hit the country in the middle of April, which forced states to impose fresh restrictions.

However, the economy has now surpassed the pre-COVID-19 level.

In value terms, the GDP stood at Rs 35,73,451 crore in July-September 2021-22, higher than the Rs 35,61,530 crore in the corresponding period of the 2019-20 financial year.

The GDP had shrunk to Rs 32,96,718 crore in July-September last year during the nationwide lockdown.

GDP at Constant (2011-12) Prices in April-September 2021-22 (H1 2021-22) is estimated at Rs 68.11 lakh crore as against Rs 59.92 lakh crore during the corresponding period of the previous year, showing a growth of 13.7% in H1 2021-22 as against a contraction of 15.9% during the same period last year, it stated.

According to the NSO data, gross value added (GVA) growth in the manufacturing sector accelerated to 5.5% in the second quarter of 2021-22, compared to a contraction of 1.5% a year ago.

Farm sector GVA growth was up at 4.5%, compared to 3% growth earlier.

Construction sector GVA grew by 7.5% compared to degrowth of 7.2% earlier.

The mining sector grew by 15.4%, as against a contraction of 6.5%.

Electricity, gas, water supply and other utility services segment posted growth of 8.9% in the second quarter of this fiscal, against a 2.3%t expansion a year ago.

Similarly, trade, hotel, transport, communication and services related to broadcasting grew by 8.2% compared to 16.1% contraction earlier.

Financial, real estate and professional services growth stood at 7.8% in Q2 FY22 compared to a contraction of 9.1%.

Public administration, defence and other services grew at 17.4% during the quarter under review, compared to a 9.2% contraction a year earlier.

No Clarity on Compensation for Bengal Coal Mining Project, Land Owners Stall Decision

‘Whatever little we know is from the newspapers. Nobody from the government has contacted us.’

Kolkata: A section of land owners at Deocha Pachami in Bengal’s Birbhum have said that they will only give up land for the coal mine project once the Mamata Banerjee government issues a formal and detailed notification on the compensation package.

The Bengal chief minister had declared that there will be no forcible acquisition of land at the site and that all land losers will be suitably compensated.

Shyamal Murmu, a land owner of Harisingha village of Mohammad Bazar in Birbhum, said while they know of the compensation assurance, they are yet to receive any formal notification from the state government in this regard.

Banerjee, on November 9, announced a compensation package of Rs 10,000 crore for those who would get displaced or affected in some way by the project. No other details except for this total amount were announced.

“Unless we get any official order in hand we are yet to decide how much land we will provide to the state government for the project. I have 25 bighas of land at Harisingha village and if we see that the official papers promise just compensation, we will then discuss with other willing landowners and then finalise our plan for the final settlement with the government,” said Murmu.

Deocha on Google Maps.

A section of land owners who had agreed to give up land has also demanded a hike in the price of land.

Somchand Hembram, land owner of Harinsingha village, is one such. He too wishes to stall the final decision until the government issues an official notification.

Hembram has five bighas of land in the village, which he inherited from his grandfather.

Also read: Behind Gujarat Mine Dumpsite Cave In, a Story of Apathy, Land Loss and Constant Pollution

For business owners, more questions are in store.

Miraz, a worker at a stone crushing factory and member of Pachami Mine Owners’ Association, said they are yet to be contacted by the government. “Whatever little we know is from the newspapers. Nobody from the government has contacted us. It is an
important issue for about 200 factory owners whose business is the source of livelihood for 3,000 people. We will only decide when we are informed about how we can restart our factories after displacement,” he said.

Sukumar Saha, a land owner of Deoanganj village in Birbhum, also said there has been no communication from the government.

“We have heard about the compensation package, but have not decided whether we will sell our land or not as we need to speak with the concerned state government officials before taking a final decision. Moreover we need to see whether the compensation
package offered by the chief minister is in tune with the compensation package offered in other states where there is no forcible acquisition of land,” Saha said.

This decision by landowners comes in the background of several Adivasi and trade union leaders saying that the Mamata Banerjee government unilaterally announced a rehabilitation package without consulting the stakeholders. Most said they are not against
industrialisation but have “doubts on several counts”.

Robin Soren, general secretary of the apolitical organisation Paschim Banga Adivasi Gaonta, said, “The administration says one thing and does another.”

Also read: Tribal Agitation Over Mamata Banerjee’s Pet Mining Project Puts Bengal Govt in Fix

Moreover, Soren said that the package is missing a clear picture. “There is the issue of farmland, forestland and vested land. We are trying to ascertain from district authorities what and how much is really being offered. We will take a stand only after we get to know this.”

Soren lives at Muhammadbazzar in Birbhum and said that the announcement of the compensation package in assembly has made landowners skeptical.

“Around 600 families who possess land are ready to give it up, but they are yet to decide anything concrete on this issue without knowledge on compensation,” Soren said.

According to state government officials, around 21,000 people including 3,601 Scheduled Caste (SC) and 9,314 Scheduled Tribe (ST) people reside in 4,314 houses of 12 villages in the area.

In the state assembly, Banerjee had said that there would not be no forcible acquisition of land as “had happened in Singur in 2006 during the rule of the Left Front.”

“The state government will ensure the rehabilitation of people who give their land for the project. They will be provided with land and houses, and a job [at the level of a junior police constable] for at least one person from each family and all their rights will be protected,” the chief minister told the house after placing the rehabilitation package.

However, Dipankar Chakravorty, general secretary of the Centre of Indian Trade Unions’ Birbhum district unit, said that it is not only a question of rehabilitation.

Also read: Explainer: Why the Mamata Banerjee-Narendra Modi Meeting Was Significant

“What about healthcare and education facilities? How will the people’s environmental concerns be addressed?” he asked.

Chakravorty said that locals were already reeling from a number of issues related to mining. “Coal mining in the vast tracts under the jurisdiction of the Eastern Coalfields Limited, particularly in the Pandaveswar area, where illegal mining by
unscrupulous elements has thrived, has caused subsidence. Moreover, the flourishing of the prescribed safety regulations, particularly sand stowing, where mineable reserves were exhausted, caused other problems to the locals,” he said.

The block has an estimated 2,102 million tonnes of coal. Banerjee has said earlier that the project requires an investment of Rs
12,000-15,000 crore and will supply coal for the next 100 years. The state has also set up a committee under the chief secretary to monitor the project. The state government is investing around Rs 35,000 crore in this project, which spans an area of 3.04 lakh acres. Of the 3.04 lakh acres, around 1 lakh acres are government owned.

Meanwhile, state government officials have told The Wire that the government will wait for a couple of months to gauge the reaction of the locals to the rehabilitation proposal and hinted that it will consider genuine suggestions.

Minorities Commission Sees Rise in Complaints From Sikhs, Buddhists and Parsis

Data submitted in parliament shows that while the commission received 1,463 complaints in the 2020-21 fiscal year, it has received 1,234 complaints in less than eight months of the current fiscal year.

New Delhi: The National Commission for Minorities (NCM) has received more complaints from the Sikh, Buddhist and Parsi communities in the first eight months of the current fiscal year (2021-22) than in the entire previous fiscal year, data submitted in parliament shows.

Additionally, the data also shows that after showing a decreasing trend over the previous two financial years (2019-20 and 2020-21), the number of complaints received by the NCM this year (2021-22) may well show an increase.

According to the data provided by the Ministry of Minority Affairs in the Rajya Sabha, in response to a question by BJP MP Rakesh Sinha, shows that among the communities, the maximum number of complaints have been made by Sikhs, Buddhists and Parsis over the first eight months of this fiscal year. While the number of complaints from Sikhs stands at 115 (from 99 last year), those from Buddhists have touched 35 (as against 28) and of Parsis has reached five (from two last year).

In the case of Muslims, the number of complaints has reached 864 as against 1,103 over the whole of last year. Likewise in the case of Christians, the figure stands at 88 in the first eight months of this year as compared to 103 over the whole of last year.

Likewise, the data provided as part of the reply by minorities affairs minister Mukhtar Abbas Naqvi, the total number of complaints had been showing a declining trend over the previous two financial years. From 1,871 complaints in 2018-19, the number dropped to 1,670 in 2019-20 and then further to 1,463 in 2020-21.

But in less than eight months of the current fiscal (until November 22, 2021), the data reveals that the number of complaints received by the commission has already reached 1,234. At the current rate (with over four months remaining for the end of this fiscal), the numbers may exceed the 1,463 complaints received last year.

Also read: US State Department Report: Extremist Hindu Groups Attacking Minorities in India

In his question, Sinha had asked for the number of complaints that the NCM received in 2018-2019, 2019- 2020 and in 2021; the classification of complaints received; and the nature of complaints.

In response to the query on the nature of complaints, the data provided by the minister revealed that in 2020-21 as many as five complaints on communal violence were received as against none under the category over the previous two years. Similarly, in the last fiscal, 119 complaints of land disputes were received as against zero in the previous two years. As per this data, no complaints of hate crime were received over the three years.

The maximum number of complaints fell into the category of “law and order matter” and “other routine complaints” over all three years. The data for the current fiscal in the matter of ‘nature of complaints’ has not been provided by the ministry.

In his written answer, Naqvi also said that as per its rules, regulations and procedures, when the NCM receives a complaint, it “either calls for a report from the concerned authority and summons them, if necessary, and thereafter makes suitable recommendations or forward the complaints to the appropriate authority(s) for taking necessary action”.

He added that “the complaints concluded as propaganda, false, frivolous, and anonymous are closed with the approval of the competent authority”. The minister also revealed that the NCM has conducted 115 hearings over the past three years to “enquire whether the complaints were genuine or false”.

Mumbai Court Cancels Non-Bailable Warrant Against Param Bir Singh in Extortion Case

Declared absconding by a court here in an extortion case, Singh surfaced in public last Thursday after six months and appeared before the Mumbai crime branch to record his statement.

Mumbai: A magistrate court here on Tuesday cancelled a non-bailable warrant (NBW) issued against former Mumbai police commissioner Param Bir Singh in connection with an extortion case registered at the Marine Drive police station.

The case was registered following a complaint filed by real estate developer Shyamsunder Agrawal on July 22 this year.

The court had earlier this month issued the NBW against Singh in connection with the case.

The Maharashtra Criminal Investigation Department (CID), which is conducting a probe into the case, had earlier sought a non-bailable warrant against the senior Indian Police Service officer.

On Tuesday, additional chief metropolitan magistrate R.M. Nerlikar cancelled the NBW against Singh.

The first information report (FIR) names Param Bir Singh and seven others, including five police officers.

Agrawal had alleged that based on a “false” case, Param Bir Singh and other police officers extorted money from him at the behest of his former business partner Sanjay Punamia.

Declared absconding by a court here in an extortion case, Singh surfaced in public last Thursday after six months and appeared before the Mumbai crime branch to record his statement.

The Supreme Court has granted him temporary protection from arrest.

On Friday, Singh appeared before Thane police in connection with an extortion case filed against him and some other police officials on the complaint of a local builder.

The IPS officer is facing at least five extortion cases in Maharashtra.

(PTI)

What Is Biting Your Wallet: Post-COVID-19, Stretched Supply Chains and High Raw Material Costs

After the coronavirus-induced lockdowns started easing across the world, growing demand couldn’t match supply, therefore leading to higher prices across categories of products.

New Delhi: Nearly two years since the onset of the COVID-19 pandemic, which has devastated the Indian economy with the sharpest drop in GDP in the country’s history and pushed 32 million from the middle class to poverty, rising inflation has become a major cause of worry.

Eating out has become expensive. According to Mint, both large and small eateries the business daily spoke with said they were grappling with high inflation. The report added that the cost of perishables such as tomatoes and chicken have shot up. Transportation costs have increased too. Added to that, edible oil prices have also jumped by nearly 50% from a year ago. For instance, average costs of a litre of mustard oil rose to Rs 170 in August compared to Rs 120 a year ago.

The Indian Express reported that restaurateurs in Bengaluru have decided to increase food prices by 10% in view of the rise in the prices of commercial LPG, edible oils and vegetables. Many have requested the Union government to reduce the GST (goods and services tax) on commercial LPG cylinders from 18% to 5%.

A homeless woman cooks food at a roadside, during the complete lockdown to contain the coronavirus spread, in Chennai, March 26, 2020. Photo: PTI

Several FMCG firms like biscuit makers Parle, which makes Parle G, Hide & Seek and KrackJack, and Britannia, which makes Good Day, Tiger and Marie Gold, have increased prices of their products owing to rising input costs.

Prices of soaps and similar personal products have also increased due to the significant rise in cost of the key material, palm fatty acid distillate (PFAD). PFAD has surged 60% over the last year, Bloomberg data showed. The distributors of Dove and Lux soaps told BloombergQuint that their prices are likely to see a jump of over 11%.

A rise in cotton and yarn prices have made apparels costlier. Apparel Export Promotion Council chairman, A. Sakthivel, told the Times of India that rising cotton prices have impacted the entire value chain. Also, volatile crude oil prices, logistics expenses, prices of dyeing and chemicals have added to the cost pressure of the apparel industry. The Union government recently hiked the GST rate to 12% from 5% on fabrics, apparel from January 2022.

As basic as getting your house painted has also become expensive as leading paint manufacturers like Asian Paints have hiked prices, The Hindu recently reported. This is also due to rising raw materials and energy costs. Such disruptions have hit the operating profits of several companies across fields.

Auto companies have reported muted growth due to supply constraints and cost pressures. The Economic Times reported, citing Kotak Institutional Equities, that EBITDA, or earnings before interest, taxes, depreciation, and amortization (which is a measure of a company’s profitability of the operating business only) are likely to be contracted 18% year-on-year due to raw material headwinds. The report cited an increase in raw material basket, including steel, rubber and precious metals.

All these additions in costs of raw material, logistics, oil, perishables etc. are being transferred to the consumers’ pocket, hence we’re now feeling the pinch of inflation.

The price rise could begin filtering down to your morning cup of coffee. International coffee prices have hit a seven-year high on global supply threats such as adverse weather in Brazil, lockdowns in Vietnam, the second biggest producer, because of COVID-19 and logistical bottlenecks.

High grocery bills are also biting the shoppers’ wallet, not only in India, but globally.

After the coronavirus-induced lockdowns started easing across the world, growing demand couldn’t match supply, therefore leading to higher prices across categories of products.

However, surprisingly, as pointed out in a CNBC-TV18 report, quoting a Deloitte report, despite high inflation, Indian consumers are prioritising their well-being and wanting to spend on personal care and clothing.

“Our latest findings reflect that despite global inflationary concerns, Indians are looking forward to have a balanced life, where they are not only focussed on saving for the future (58%) but also want to spend for experiences and goods/physical possessions (50% each). While 74% of Indian respondents are concerned about inflation, at the same time, 85% of Indian respondents plan to spend on leisure travel in the next four weeks, 71% of Indian respondents feel safe engaging with one-on-one services and 68% of Indian respondents feel safe going to a restaurant,” Deloitte Touche Tohmatsu said in a statement.

Also read: Book Review: Studying the Human Side of J&K’s Economy

Fuel price rise

On April 22 last year, Brent Crude hit a low of $16 per barrel due to rising oversupply and weak demand, owing to the coronavirus-related restrictions. Since then, its price has risen about 60%, so far, this calendar year. But, on November 28, the price of Brent crude tumbled to $72 a barrel since hitting a three-year high of $86.70 a barrel on October 25. However, fuel prices in India still remain high.

A worker fills petrol at a pumping station, as the price of petrol reaches Rs 119 in Bikaner, October 30, 2021. Photo: PTI

As economic commentator Vivek Kaul explained, “Taxes… form a significant part of the overall retail price. The retail price or the price we pay for petrol and diesel at the pump, is made up of four components – a) The price at which the dealer buys petrol and diesel from the oil marketing companies like Indian Oil, Bharat Petroleum or one of the private companies. This price includes the cost of producing petrol and diesel and getting it to the pump where it is sold. It also includes the profit margin of these companies. b) The central government tax. c) The state government tax. d) Dealer commission.

Of the four components, the price at which the dealer buys petrol and diesel from the oil marketing company, is the biggest variable. It is tied to the price of international crude oil.

For the other components, the central government levies excise duty, states levy valued added tax (VAT) or in some states, it’s called sales tax, and the dealer commission is mostly inconsequential in affecting the final retail prices of petrol and diesel.

Between 2014-15 and now, taxes imposed by the central government on petrol and diesel have increased by 217% and 607%, respectively.

New COVID-19 variant

“We are not yet in stagflation,” Alicia Garcia Herrero, chief Asia Pacific economist with Natixis SA, told Bloomberg. “But one more year without cross-border mobility and related supply chain disruptions might push us there.”

However, Paul Donovan, chief economist at UBS Global Wealth Management told the Financial Times that the Omicron variant was “unlikely to change the broader economic narrative at this stage”.

The report further added that “most economists believed that any slowdown in economic activity was also unlikely to curb the recent surge in inflation, particularly in goods where demand has outstripped global supplies that have been riven by disruptions”.