Global food prices surged by 28% in 2021 compared to year before — highest in a decade, according to UN estimates. By May 2022, food prices were 60% higher compared to 2020.
The measures have been imposed to insulate the domestic market from higher international prices. But they could reduce incentives for producers to expand production in the long run.
It has also decided to enhance the fertiliser subsidy for farmers, and reduce import duty on some raw materials. ‘It is always people first for us!’ tweets prime minister.
PM Modi singled out Opposition-ruled states for doing ‘injustice’ to the people by not reducing fuel taxes. He also praised BJP-ruled states for following Centre’s recommendations.
India’s domestic gas production is already tiny & it has shrunk by 40% over past nine years. Keeping that base narrow with unsustainable pricing wasn’t a financially prudent move.
Officials say for fiscal calculations, govt assumes avg price of crude for 12 months, so no need for excise duty cut. Decision on Russia’s offer of crude supply in a few weeks.
Consumers in India have enjoyed artificial respite from rising global prices since 4 November — crude has gone up by almost $14 a barrel — and oil companies need to make up for losses.
The last time this matter flared up was when Delhi Chief Minister Rekha Gupta, in a very similar directive in April, called for the relocation of stray dogs in the capital.
Finance ministry says the proposed revamp will focus on structural reforms, rate rationalisation & ease of living, & will be deliberated upon in the coming weeks.
The project is meant to be a ‘protective shield that will keep expanding’, the PM said. It is on the lines of the ‘Golden Dome’ announced by Trump, it is learnt.
Now that both IAF and PAF have made formal claims of having shot down the other’s aircraft in the 87-hour war in May, we can ask a larger question: do such numbers really matter?
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