Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1082 Sun. June 17, 2007  
   
Letters to Editor


Businessmen's budget


A special correspondent's report (June:9) in a local English daily states that the Finance Adviser has said (and I quote) "Businessmen care little about imposition of fresh duty. Rather they are concerned about getting uninterrupted power supply". It's true, because businessmen add profit over all costs of goods at the point of sale, including an allocation of the anticipated interest on working capital.

Naturally the more the cost, the larger the quantum of profit! Businessmen logically need more availability of electric power; so that their quantum of output, turnover and therefore profit also increases. No wonder, sugar retail prices have shot up from June 8! Does the adviser spare a thought for the needy fixed wage earners, particularly in private sector, where palm greasing opportunities are rare, if not absent.

His concern is for about a lakh of our businessmen, the rich in society. He has totally ignored the concerns of the large numbers (about four crore fixed income group) of needy people groaning under the spiralling prices. One can only wonder what more trials and tribulations are in store for us.

The reality is "prices rise, they hardly fall". Duty reductions will not bring prices down, and that is the fact of life. Let us watch and see when and how much price will fall except for the natural harvesting season price decrease! Price rise started only a few hours after the budget speech; particularly retail price of sugar, thanks to the adviser's kindness in rationalising the duty structure for sugar import!