This refers to the news report "Centre-RBI disagreement deepens over inflation and rates cuts"that appeared in BL dated 20th Nov 2024. The best and only way to contain food inflation is to have a different approach by creating a' Food Inflation Neutralisation and Stabilisation fund ' under the auspices of Reserve Bank , NABARD and the Banking System administering effectively the supply chain management of the sensitive food commodities particularly, Tomato, Potato and Onion and other vegetables and fruits , involving state Governments. The need to activate RBI Local Boards in the matter is very paramount . It is high time MPC and RBI local Boards coordinate and think of some concrete measures to contain the food inflation which remains broadly undefined and defiant. Man made inflation cannot be controlled by the Monetary theory policies alone is a proven fact as inflation inter- alia is a creation of poor administration with active support of unhealthy politics and tolerance of unethical and all sorts of malpractices . RBI has been providing the best of accommodative policies for years and has strengthened the financial and Banking system stability perhaps unheard of so far , but still the inflation continues to be a major stumbling block in the economic growth which cannot be allowed any more to realise the dream of India becoming an advanced economy by 2047. The peoples' aspirations to see India as a welfare nation can be fulfilled only by adopting and adhering to some very dynamic and untried policies and approaches.
T V Gopalakrishnan
( Sent to Hindu Business Line )
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