INFLATION: Can It Be Controlled In The Present World Scenario?

"I believe that we have all at some time eaten the fruit from trees that we did not plant. In the fullness of time, when it is our turn to give it behooves us in turn to plant gardens that we may never eat the fruit of, which will largely benefit generations to come, I believe this is our responsibility one that I hope you will shoulder in time" These are the words which were given by Mr.N.R Narayana Murthy Chairman of the board and chief mentor of Infosys technologies limited one time in his past life and these words can do something in solving our present problem which is called "Inflation-The current biggest worry" if India wishes to avoid volatility in food prices ,the only option is to become self sufficient 'Unfortunately we are not' .

India's Inflation is high today because of food prices ,crude oil and commodity prices .India is a marginal importer of wheat ,a large importer of edible oil ,pulses and a very large importer of fertilizers ,which are necessary to grow food ,we are therefore vulnerable to very high prices of food ,so India need to promote high agricultural growth ,well there are some other factors also which are causing rise in inflation and that is our Indian Market .

Our Indian market is totally a retail market driven by small hedgers ,producers ,exporters ,importers ,processors or small speculators ,so at somewhere our Indian market is dependent on international market .In international market prices are rising that's why its giving a effect on our Indian market prices and this pressure on the economy would continue till international prices decline .India is a major importing country so in this way we can say we are importing INFLATION also in our country ,unless international prices decline we will be under pressure .India's and China 's high rate of economic growth which is driving up the demand for commodities in the world and the result is Inflation. Well now there is a sign of relief as the annual rate of inflation eased to 7.14 percent for the week ended April 5 from the previous week's forty month high of 7.41 percent .so today there is a need of taking some responsible steps by our government so that this generation get some benefit and in future we can think that our government could not help to properly control the inflation but at least our government has taken some positive steps to stagnate inflation. There are some steps that our government should take, these steps are-

First is our Indian government has to make strategy for maintaining high growth while keeping prices fairly stable is to increase productivity ,ameliorate skills shortages and add capacity through investments ,monetary policy will continue to play a critical role in maintaining price stability

Second India has to build it buffer stocks again because becoming import dependent for food is a scary scenario Third is state government should take effective action against hoarders and black marketers.

Other things are people's participation which is also necessary to check inflation. People should cut down the demand by judicious use and preservation of food items and then also supply of food at controlled prices through the public distribution system for mitigating the effects of inflation .

Along with population control ,the export of routine consumption goods needs to be banned and also if price stability means sacrificing a bit of growth then our government will have to sacrifice a bit of growth in order to maintain price stability ,so presently government needs to take a hard look at such option for early implementation ,so I would say government has to be prepared and willing to take some hard and responsible decisions which are necessarily to mitigate the rising distress level of the common man .

Inflation can come under in a controlled state if our government and every sector of India behave responsibly than we can expect some fruitful results in future and for all this to happen we all have to be patient ,Do not expect miracles because it will take some time so at last I would say we all Indians should adapt this policy which is called WAIT AND WATCH POLICY .

-ANITA SAGAR