Ordinary masses feel the pinch of rising prices is a fact although officially inflation has come down. At retail market the prices are not coming down becuase of several factors where RBI has absolutely no say. The oil prices have come down but the transport costs have not come down. On the contrary, the transport costs have always been on the increase due to Toll Charges, Service Tax, labour costs, bribes paid at various levels right from the producers place to the retail points.There are some standardised market practices which do not stand justice or prudence. For removal of garbages from retail shops and market places apart from Corporate and muncipal levies one has to pay bribe to get the place some what clean and the cost is naturally borne by the retail customer. Rough estimate would indicate that retail prices can be brought down at least by 25 % from the prevailing rates if banks take care of the finacial needs of retail borrowers replacing thereby the money lenders who operate in the market places particularly in retail and whole sale vegetable and fruit markets, bribes paid at various levels are eliminated, reduction in the oil prices are systematically passed on to the consumers, efficiency standard get improved, in sorage, transportation and marketing of products with speed and less wastage etc. Peoples' participation by various means need to be ensured and there should be social audits. Governence is largely missing or ineffective causing pressure on retail prices where RBI has only very limited say.
Dr T V Gopalakrishnan
( Comments given to BS on 10/8/15).
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