Inflation and impact on fertiliser, sugar and fuel subsidies


Our FM has at last politically consented to an increase in fuel prices. So if you are a shareholder, rejoice. Your company is now perhaps 12 months away from bankruptcy instead of 2. That is about all.

Look at the fertiliser subsidy. Who gets it? Farmers growing potato for Pepsi, Coke, ITC, – so that they can buy potatoes for Rs. 2 and sell it to you for Rs. 300 a kg.

Tobacco farmers so that they can spread cancer – and those of us who feel guilty once in a while can send the cancer society a cheque

Coconut, fruits, vegetable farmers are all the other “poor” farmers who benefit by the subsidy. And the government calls it “fertiliser subisdy” – why not call it “Pepsi subsidy” so that we can create a “soft drink anonymous (circa 2015 you may not laugh at this)?

Who gets the sugar subsidy? Or why P C keeps sugar prices low (it is 3% of the index you see). Well about 70% of the sugar is sold to the “organised sector” which means cakes, soft drinks, chocolates, etc. are the beneficiaries. Thank you Mr. P C for all the subsidies.

Fuel subsidies of course goes to the government – the biggest consumer of petrol and clearly an inefficient user.

Am I cribbing about the government wasteful spending? No. Let it cause a ripple effect on the economy.

Long live petrol price hike. The next one will be by a new government, which might be BJP.

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2 Comments on “Inflation and impact on fertiliser, sugar and fuel subsidies”

  1. Ravinder Makhaik Says:

    Taking the mask of subsidies.

    There is nothing known as free lunch.

  2. subra1221 Says:

    Ravinder that is a mistake you are making. There are free lunches every where – you need to know the powers that be to get the food coupons. I have seen the government subsidise
    education, water supply, garbage disposal, gyms at IIMs, you got to see the total subsidy that the government doles out. For eg in a city like Mumbai all the citizens pay for road maintenance – thus subsidizing the car owners. It is a funny world. Find and be friend the guys who dole out the coupons. That is important.


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