Punjab Newspaper

The Punjab Chief Minister, Mr. Parkash Singh Badal today asked the Prime Minister, Dr. Manmohan Singh “to roll back the steep and unbearable” hike in fuel prices announced by Government of India the other day. ” This exorbitant hike comes at a time when our economy is already beginning to choke under the severe impact of inflationary pressures. The decision would break the back of the poor and the middle classes in general and the farmers in particular, ” the Chief Minister pointed out. In his letter to Dr. Singh today, Mr. Badal said.
“The combined effect of all these factors would be to increase inflationary pressures, slow down the pace of growth and development and increase the general cost of living for the common man,” said Mr. Badal Releasing the contents of the letter to newsmen this evening, CM’s Media Advisor Mr. Harcharn Bains said that Mr. Badal was also likely top press for this in a meeting he proposes to have with the Prime Minister on the issue. In his letter the Chief Minister said that he had been “anguished” by the decision of the Union Government especially as it came at a time when the prices of the all essential goods ‘had already shot through the roof and inflation was spiralling out of control, threatening to break the dreaded 9% barrier’.
Expressing grave concern over the fall-out of this decision on the economic health of states, Mr. Badal said, “The negative economic spin-off of the decision would seriously affect developmental activity in states by causing sudden and unbearable price escalation in project costs which, in turn, would slow down growth-rate and push up the rate of inflation.” The Chief Minister also pointed out that the worst-hit as a result of this hike would be the farmers of Punjab who would face the double-menace of rise in the costs of agricultural production as well as in the general cost of living.
“Farm production would become its first casualty, putting a question mark over the country’s food security,” said Mr. Badal, adding that this would badly hit both the producers and the consumers of food grain in the country. Diesel, he said, was a major input in farm operations. In addition to that, the hike was also certain to impact prices of fertilizers, pesticides etc. The Chief Minister said that the untimely decision would result in the over all slow-down of the economy in the country in general, especially in states like Punjab. “Trade and Industry in Punjab, which were already facing severe constraints as a result of the Government of India’s refusal to extend to the State the same concessions which were given to its neighboring states, would suffer a further blow. The impact of the hike on these two sectors, along with the Transport Sector, was certain to be felt in almost every sphere of economic activity” said Mr. Badal.