SCAM OF FOOD ARTICLES “INFLATION”

By sampreeth

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INFLATIONMEHANGAI

• Congress & Mehangai are becoming synonymous. Though Congress-Govt. is claiming 8 to 10% growth the Aam Aadmi is asking a simple question “growth for whom? The poor are becoming poorer. They have remained outside the preview of growth.

• Since November 2009 there has been an inflation of 20% in Food Articles. Prices of 17 essential commodities mainly wheat, rice, sugar, dal have doubled in the past few months. Sugar is scoring half century, i.e. almost Rs.50 per kg. Tur Dal has scored a century, i.e. Rs.100 per kg

• 2008 we had double digit inflation than –1% i.e. negative inflation i.e. deflation in August 2009. Now in December 2009 inflation once again gone up to 7.81%. The country is marching toward double digit inflation in march 2010

• 90% of Population who are Aam Aadmi- Middle Class, Poor , Worker & whose 50 to 80% monthly budget spent on Food Articles

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FOOD INFLATION – 20%NOV. 2009 TO JAN 2010

Week ending Food Inflation %

28.11.2009 19.05

7.12.2009 20.00

1.1.2010 19.68

(Source : Reserve Bank of India)

TRENDS OF INFLATION

Year 2009

Wholesale Price Index

Consumer Price Index

April 1.31 9.09

May 1.38 10.21

June -1.01 11.26

July -0.67 12.67

August -0.9 12.67

Sept. 0.50 12.97

Nov 4.78 19

Dec 7.31 20 4

Food prices up & up• In December 2009 prices of processed food rose by 27%, Potatoes

70% Onions 45% Dal 45% & cereals 14%. In last six months Dal has gone up from Rs.56/kg to Rs.96/kg. The price of quality rice has increased by 25%.

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Period Item % increase

December 2009

Processed FoodPotatoesOnionsDalCereals

2770454514

In the last 6 months

RiceDal

2580

• 20 lacs Ton i.e. 200 crore kg imported raw Sugar lying in the godowns/ cold storage at JNPT/ Kandala Port Trust for 8 weeks. The Private companies imported it @ Rs 18/kg. Due to such ilegal hoarding prices have double up. Govt did not took any steps to stop such profiteering

• The Union Cabinet now January 13 announced steps to import sugar, dal to release wheat & rice. What they were doing till now ?

• The famous Indian phrase of the common man “Dal roti khayenge, Prabhu ke gun gayenge” is becoming history. Dal is becoming a weekly/festival food for the poor people.

• We want action not promises. 78% of India’s population have monthly income of Rs 5,000 to Rs 25,000. They want

Do Time ka Khana

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• In 2009 we had a record production of 991 lac ton Rice, 805 lac ton wheat & 2006/07 & 2007/08 combine 7036 lac ton Sugarcane and 546 lac ton Sugar. The production far exceeded consumption.

• In reply to Parliament Question No.4162 of 15.12.2009 on rising prices, the Minister stated “Prices of wheat in the domestic market increased by 22.6% over the year. In last year, prices of edible oil/RBD palmolein increased by 22%. Domestic prices of all pulses increased by 131%” added: “We are watching the situation”

• Who are the beneficiaries? Multinationals, Corporates, Speculators & Commodity Exchanges.

• BJP wants Prime Minister to deliver & Mr. Sharad Pawar to act. Congress Govt has to take care of the Aam Aadmi.

• BJP wants prices of the essential commodities to be brought down.Common Man wants Daal Roti.

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Retail Prices (Rs./kg)-Metro Cities(Source :Department of Consumer Affairs-Govt. of India)

Product 2005 2007 Oct, 2009 Jan,2010

Rice 13 15 22 48

Wheat 9 12 13 29

Sugar 19 19 32 50

Tur Dal 30 36 82 100 8

Retail Prices (Rs./kg)-Metro Cities(Source :Department of Consumer Affairs-Govt. of India)

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RETAIL PRICES - Cities

Monthly budget of a common man is disturbed due to heavy food inflation.

It has upset his routine life. 50% of the people are now having Dal one time in a day. Expenses on the children’s education has been curtailed.Expenses on medical treatment are reduced drastically. Operations/ surgeries are postponed.CONSUMER MINISTRY SAYS• Consumer Affairs Ministry of Govt. of India itself agrees that in

urban India prices of rice, wheat, sugar, tur dal have jumped by 100 to 200% during the past 4 years, i.e. from 2005 to October 2009

• Prices of rice, which were Rs.13/kg in 2005 went up to Rs.22/kg in October 2009 have reached Rs.48/kg in January 2010.

• Prices of Tur Dal, which was Rs.30/kg in 2009, was Rs.84/kg in October 2009 and is Rs.100/kg at the time of Makar Sankraman, i.e. 14.1.2010.

• Prices of Wheat have gone up by 100% - which was Rs.9/kg in 2005 has now reached Rs.27/kg

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Chawal Rice me GadbadPrice increase from Rs.10/kg in 2004 to Rs.48/kg in 2010

• Rice and wheat are the two major food grains consumed in India. Dal Rice and Dal Roti are the food of more than 90% people

• The price of Rice during the 5 years of Congress raj has increased by 500%. Price went up from Rs.10/kg in 2004 at the time of BJP’s Atal Beehari Vajpayee’s Govt. to Rs.48/kg in January 2010

• India has bumper crop of paddy/rice in the last several years. Record production of 991 lakh tons in 2009

• Farmers have been paid Rs.8.50 to Rs.10/kg but the sale price in the market is Rs.48/kg

• Disastrous export-import schemes of Rice – 100 lakh tons of Rice exported at Rs.18 to 20. Indian farmers paid Rs.8.50 to Rs.10. Indian customer is paying Rs.48/kg while export is done at Rs.18 to 20

• It is a scam – looting of common man/customer and the small farmer/producer by MNCs, big companies. Government’s economic policies beneficial to these companies resulted in huge profit to the commodity companies. Share prices of KRB Ltd. Increased by 300% in 9 months between April 2009 and January 2010 11

Wheat GHOTALAPrice of wheat increased by 300% inUPA Governmemnt

• Good quality wheat was available at Rs.9 in 2004 during the BJP-Atalji’s raj

• The price of wheat increased by 300% in the last 5-1/2 years of Congress raj. Price went up to Rs.29 per kg in January 2010

• Production of wheat is highest in the last 3 years – 805 lac tons in 2008-09. Farmer is paid Rs.10 per kg but the consumer is forced to pay Rs.29 per kg

• Congress-Mr. Sharad Pawar imported 100 lac tons of horrible quality of red wheat at Rs.19 per kg in 2007

• India had bumper crop of 2348 lac tons of wheast for the last 3 years, i.e. 2007, 2008, 2009. Government had bumper buffer stock overflowing at FCI godowns. No scarcity or import. Then also the price of wheast has doubled

• wheat Ghotala – farmer loser, consumer looted, multinationals are minting hundreds of crores of rupees

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SUGAR SCAM

• Sugar import-export scheme – 48 lac tons exported in 2008-09 at Rs.12.50 per kg. Govt. of India gave Rs.1.44/kg subsidy to the exporter. Now it is going to import at Rs.42/kg

• India produced 573 lac tons during 2007, 2008, 2009. Availability of Sugar was more than the consumption

• Sugar growers/farmers got the same price of Rs.85 to Rs.100/quintal but the consumer has to pay Rs.50 per kg

• Beneficiaries are multinationals, big sugar companies. Revenue/profit, share prices of these companies have increased by 300% in the last one year

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SUGAR SCAMCost of Sugar Production

• For 1000 kgs crushing of sugar cane, the farmer was paid Rs.1,000 to Rs.1,100 in 2008-2009

• 1000 kilograms of sugar cane result in sugar and other by-products

-- 100 kgs Sugar

-- 53 kgs Molassis

-- 300 kgs Bagasse

-- 13 litres Alcohol

-- Ethanol, power generation and other products

• The actual cost of sugar, after calculating the sale of by-products, comes to Rs.10 per kg

• Farmer actually gets Rs.10 per kg and the customer is paying Rs.50 per kg

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DAL ME KALA

• Common man in India eats Dal and Roti. Price of Dal has increased by 200 to 400% during the Congress raj

• In 2004 during the BJP-Atalji Govt., Chana Dal available at Rs.25/kg, has gone up to Rs.56/kg in January 2010.

• Moong Dal available then at Rs.24/kg has gone up to Rs.100/kg in January 2010

• Common food of Dal has become now the food of the festival

• Dal me kala Congress ka ghotala

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Edible Oil

• Price of Edible Oil was Rs.40 per kg during the BJP-Atalji’s Govt. in 2004

• Price of “Mustard oil” – Edible Oil has gone to Rs.100 per kg in January 2010

• India has become dependent on imported Edible Oil now

• In 2008-09, India consumed 160 lakh tons of which 75 lakh tons was imported oil

• Is it food security?

• Almost 50% dependence on imported Edible Oil by our ‘Krushi Pradhan Desh’

• SHAME.16

Our next generation:

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On food inflationPrime Minister Manmohan Singh says

“Don’t worry we are moving towards

double digit growth”

Is it not Haath ki Safai ? Mahangai ka Mahaghotala

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On food inflationGovt- Sharad Pawar says

“Price of sugar, wheat rice… are cheaper

in India compare to America & England”

Is it not Haath ki Safai ? Mahangai ka Mahaghotala

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Congress President Madam Sonia Gandhi says

“Congress will write to Govt on Food Inflation”

Is it not Haath ki Safai ? Mahangai ka Mahaghotala

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Gehu Chaval Sakkar Prices Double Govt-Ministers says – gives explanation SAFAI…

“we are reducing the taxes on dog

biscuits”

Gehu-Chaval-Shakkar Prices Double Govt Mr Chidambaram says

Is it not Haath ki Safai ? Mahangai ka Mahaghotala

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Gehu-Chaval-Shakkar Prices Double Finance minister Pranab Mukherjee says

“We are watching the situation”..

Is it not Haath ki Safai ? Mahangai ka Mahaghotala

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Gehu-Chaval-Shakkar Prices Double Govt-Minister Kamalnath says…

“Poor people are now eating more

food”

Is it not Haath ki Safai ? Mahangai ka Mahaghotala

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Why this corruption ji ?

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Govt / Ministers – gives SAFAI…

• Prime Minister Manmohan Singh “Don’t worry we are moving toward double digit growth”

• Sharad Pawar“Price of sugar, wheat rice… are cheaper in India compare to America & England”

• Sonia Gandhi“Congress will write to Govt on Food Inflation”

• Chidambaram - “we are reducing the taxes on dog biscuits”• Kamalnath - “Poor people are now eating more food”• Finance Minister Pranab Mukharjee

“We are watching the situation”..

Is it not Haath ki Safai ? Mahangai ka Mahaghotala?

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FOOD INFLATION Skyrocketing Retail Prices

Price Rs/kg

Item 2004

2008 January 2010

Wheat 9 20 29

Rice 10 22 48

Sugar 14 20 50

Edible Oil 40 95 100

Dalda 40 72 85

Chana Dal 25 40 56

Mung Dal 24 48 100

Besan 20 48 60

Milk 14 20 30

Kerosene/litre

18 35 35 26

FOOD INFLATIONSkyrocketing Retail Prices

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Procurement Cost & Retail PricePrice Paid to farmers & Paid by Common Man/Customer

Item

2007-08 2008-09 2009-10

Retail Price

Cost paid to

Farmer

Retail Price

Cost paid to

Farmer

Retail Price

Cost paid to

Farmer

Rice 14 8.5 22 9 48 10

Wheat 12 8.5 14 10 29 10.80

Sugar cane/ Sugar 16 8/12 18 8.5/14 50 10.7/18

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Government Policy – Rob the farmer and loot the customer

• The economic, export-import and consumer policies of the Congress Govt. are to rob the farmers and loot the customer for the benefit of the big companies and multinationals

• Price paid by the Govt. to the kisan for Rice is between Rs.9 to 10 per kg in the last 3 years but the retail price of Rice has gone up to Rs.48

• Govt. is purchasing wheat at Rs.10.50 per kg from the farmers. The price of wheat in January 2010 is Rs.29 per kg

• Sugar cane price paid to kisan is Rs.1/kg. Cost of production of sugar comes to Rs.10 per kg to the big sugar factories after taking into account all the by-products. Sugar is sold at Rs.45 to 50 per kg in the retail market

Production - food articles(in lakh tonnes)

Item2006-07 2007-08 2008-09 2009-10

Production Production ProductionProduction

(target)

Rice 933 966 991 716

estimate

Wheat 758 785 805 790

Pulses 142 147 146 165

Sugarcane 3555 3481 2739 3400

Sugar 282 264 147 N.A.30

Production - food articles

• India had bumper crop of wheat & rice for consecutive three years i.e. 2006 to 2009 . Wheat yearly production has gone up to 805 lac ton in 2008/09 from 758 lac ton in 2006/07

• Rice production increased from 933 lac ton in 2006/07 to 991 lac ton in 2008/09

• Bumper Sugar Cane production of 3555 lac ton in 2006/07 & 3481 lac ton in 2007/08. Sugar production in 2006/07 was 282 lac ton & 2007/08 was 264 lac ton, highest in last few years. India exported 48 lac ton sugar in 2008/09 @ Rs 12.50/kg & start importing sugar in 2009 @ Rs 28 to 36/kg

• Govt. has huge bumper stocks in FCI godowns. Surplus production of wheat & rice yet prices have doubled.

• Farmers got minimum price but Customers are paying Double.• MNC’s , Corporate & Commodity Exchanges are looting the

people of India with the help of Govt 31

Export-Import of Food Articles (in lakh tonnes)

Item2006-07 2007-08 2006-07 2007-08

Export Export Import Import

Rice 48 65 nil nil

Wheat nil nil 61 18

Sugar 16.43 46.41 nil nil

Pulses 2.5 1.63 23 28

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STORY OF SUGARENOUGH STOCK-AVAILABILITY – YET PRICES TOUCHING SKY

• Story of Sugar is nothing but manipulation by the Sugar Samrats.• Prices have gone up from Rs 22 to Rs 50/kg in just one year. A sugar

exporting country is converted into importing country• India produced 573 lac tons sugar during 2007-10. The country had

opening stock of 105 lac tons• Total availability of sugar for these 3 years was 678 lac tons• Yearly consumption of sugar including consumption by confectionary

and sweet manufacturing industry was 213 to 220 lac tons• With annual consumption of sugar 220 lac tons, 146.8 lac tons

production of 2008-09 + 105 lac tons opening stock, we had sugar surplus, i.e. opening stock of around 31 lac tons sugar in Diwali/October 2009. This is domestic sugar

• India exported 80 lac ton sugar @ Rs 12 to 14/kg during 2007 to 2009 & now we are importing 50 lac ton sugar @ Rs 38/kg

• Govt paid thousand crores subsidy of Rs 1.44/kg to these exporters• Farmers got the same price of Rs 85/quintal for his sugarcane &

consumer paying double rate33

SUGAR – PRODUCTION – CONSUMPTION - AVAILABILITY in lakh tonnes

2003-04

2004-05

2005-06

2006-07

2007-08 (Est)

Opening Stock 116 85 40 36 92

Production 140 127 193 283 263

Imports 4 21 - - -

Total Availability

260 233 233 319 355

Off-take (a) Internal Consumption(b) For Exports

173

2

185

0.04

185

11

210

17

225

48

Closing Stock as on 30th Sept.

85 48.25 36 92 82

(Source: Indian Sugar Manufacturers’ Association)

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PRICE RISE OF SUGAR in Urban India(Source : Parliament reply of 4.12.2009 Price Rs./kg )

City As on 1.10.09 As on 11.01.10

Delhi 32 50

Mumbai 33 45

Kolkata 30 46

Chennai 30 47

Banglaru 30 48

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SUGAR COMPANIESSHARE PRICES AT BSE

Name of the SugarCompany

Price as on

7.1.2010 11.11.2008

Bajaj Hindustan 35 13

Balrampur Chini 143 47

Dhampur Sugar 152 26

Shree Renuka Sugar 243 70

Sir Shadilal Enterprises 176 56

36Shree Renuka Sugar Owned by sharad pawar

SUGAR COMPANIESSHARE PRICES AT BSE

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BOUNTY HARVEST FORCORPORATES/COMPANIESShare prices of Food companies go high and high

• Prices of shares of sugar, rice, tea, oil companies go up by 150 to 340% in 9 months i.e. April to December 2009

Company % change

Bajaj Hindustan (Sugar) 341.62

Balrampur Chini (Sugar) 151.13

Mcleod Russel (Tea) 291.09

Jay Shree (Tea) 264.58

KRBL (Basmati) 299.31

LT Foods (Basmati) 124.74

Ruchi Soya (Edible Oil) 262.93

Source: Business Standard – 21.12.200938

Moral of the Story Food prices Inflation– Corporates & Multinationalsenjoyed and Earned Lucrative Profit in Two Years• Farmer faced disaster & got uprooted in sugar cane

price in last four years• Farmers got minimum price for their crop• Consumers looted in broad day light• Companies & MNCs minted Money• Share price of Sugar Companies increased by

hundred percent in last two year• Share price of all Commodity Companies have

tripled in last nine months at Stock Exchanges• Share Price of Bajaj Hindustan went up by 341%• KRBL the Rice company share went up by 299.31%• Ruchi Soya the oil company share up by 262.93%• Is this not ‘Safed Chori’ or manipulation? 39

Edible Oil Position(in Lac Tonnes)

Oil –Year(Nov.-Oct.)

Net availability of edible oils from all domestic sources (Nov.-Oct.)

Import of edible oil(Nov.-Oct.)

2004-05 72.47 50.42

2005-06 83.16 44.17

2006-07 73.70 47.15

2007-08 86.54 56.08

2008-09 85.52 75.6840

EDIBLE OIL

• Till few years back, India was self-sufficient in the edible oil• In the era of global economy, liberalization, India has become

a major importer of edible oil, Soyabean Oil• From the Table, it can be seen that Indian dependence on

imported oil is increasing every year.• In 2005-06 60% of our consumption was imported oil• In the year 2008-09, it has gone up further • Edible oil consumed in major cities is imported.• In 2008-09, out of 85 lac tons consumed in these urban areas,

75 lac tons is imported one• Is it national food security?• In Congress raj, slowly and steadily Indian food security is

being pledged to the foreign multinationals and Commodity Exchange players

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govt ne Kya Kiya

• Farmer paid far less than the cost of production• Customer looted – paying 5 times the price paid to the

farmer for wheat, ricee and sugar• Bumper crop and buffer stock but the Congress Govt.

created artificial climate for shortage• Support to the speculation and Commodity Exchange and

big companies, multinationals dealing in these commodities – wheat, rice, sugar

• Revenue, profit and share prices of these companies have trebled in the last one year

• Congress Govt. transferring many of the essential items in future trading

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UPA ne Kya Kiya

• Congress Govt. encouraging farm future trading/commodity exchange and transferring/shifting banned items also in the form future trading/forward trading

• In January 2010, Congress Govt. is planning for release of food banned commodities like Chana Dal, Potato, Soya, rubber

• Commodity Exchange has become the den for speculators, big companies and MNCs. 90 to 95% of the translations are without delivery, i.e. speculator

• Congress, for the benefit of big companies, MNCs, did not create buffer stock of sugar

• Govt. has adopted manipulative export-import policies for the essential food items like wheat, rice, sugar. In the same year, these items were exported and imported.

Government ne dhoka diya

• The Congress Govt. asked votes in the name of Aam Aadmi.

• How ever in the past 5 years, Congress has betrayed the Common Man.

• Prices have gone up every where.• Aam Aadmi is crushed.• Congress ke Haath ki Safai maar gayi, sub kuch

loot liya aur Mahangai Maar Gayi.

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Thank you:

45Sampreeth.S.M.