FOOD INFLATION MISMANAGEMENT/MANIPULATION! BHARATIYA JANATA PARTY

INFLATION 10% - FOOD INFLATION 20% Result of Failure of Govt. Economic Policies Wheat, Rice, Sugar, Dal price doubled in past few month Inflation 2009 August -1% - December Food Inflation 20% Tendulkar Committee said 12% increase in Poverty 78% of our Population spends 60 to 80% of their monthly income on Food Articles It is observed that when ever Congress comes to power inflation zooms up. Inflation was in double digit during Congress Raj in 1991/1995 when Dr Manmohan Sing was Finance Minister. Now again Inflation marching to 10%. Food Inflation touched 20% after 11 years

FOOD INFLATION – 20% NOV TO JAN 2010 Week endingFood Inflation % (Source : Reserve Bank of India) TRENDS OF INFLATION Year 2009 Wholesa le Price Index Consumer Price Index April May June July August Sept Nov Dec

FAILURE OF CONGRESS-UPA GOVT. “FOOD FOR THOUGHT ONLY” Failure to create buffer stock Consumers paying 3 times more than the price paid to farmers Commodity Exchanges – - Forward Trading of Essential Commodities - 99% speculation trading, actual delivery less than 1% Beneficiaries are Multinationals & Corporate, Manipulators, Speculators and Black Marketers Profit of Commodity companies gone up by 500 to 2,900 % in last quarter of 2009

Production - food articles (in lakh tonnes) ( source: agriculture ministry) Item Production (target) Rice estimate Wheat Pulses Sugarcane Sugar N.A.

Procurement Cost & Retail Price Price Paid to farmers & Paid by Common Man Retail Price Rs./kg Price Paid to the Farmers Rs/kg Year Rice Wheat Sugar Cane/ Sugar to 1210 to 1414 to 18 6

Chawal (Rice) me Gadbad Record production of 991 lakh tons in 2009 Price increase from Rs.10/kg in 2004 to Rs.32/kg in 2010 Farmers got Rs.9.50/kg but Customer paying Rs.32/kg Manipulative export – lakh ton Rs.18 to 20/kg. in

GEHU (WHEAT) GHOTALA Production up from 758 lac ton in 2006/07 to 805 lac ton in 2008/09 Farmer got Rs.9.50/kg, Consumer pays Rs.24/kg Import of 100 lac ton of inferior red wheat at Rs.19/kg Commodity Market Manipulation Forward Trading re-started in May 2009 Out of 14 lac ton turnover actual delivery 1,400 ton 99.99% speculative trading during May to Dec

KADVI SHAKKAR – SUGAR SCAM Import-export Manipulation lac ton exported in Rs.12.50/kg. -- Now importing Raw Rs.36/kg Govt. gave Export & Transport Subsidy to Exporters. Why govt. did not created buffer stock of Sugar ? Prices up from Rs 22 to Rs.45 to 50/kg in one year. Speculation & Manipulation at Commodity Exchange 2009 Turnover 79 lac ton but delivery 1.11 lac ton Speculation 98.6% Banned from forward trading since May

SUGAR – PRODUCTION – CONSUMPTION - AVAILABILITY in lakh tonnes (Est) Opening Stock Production Imports Total Availability Off-take (a) Internal Consumption (b) For Exports Closing Stock as on 30th Sept (Source: Indian Sugar Manufacturers’ Association) 10

DAL ME KALA Price of Dal gone up by 200 to 400% In 2004 during the NDA/BJP Govt., Chana Dal available at Rs.25/kg, which has gone up to Rs.56/kg in January Tur Dal that was available then at Rs.24/kg had gone up to Rs.100/kg in January 2010 Tur Dal Century & Sugar Half century 11

Khaane ka tel – Edible Oil Price of Groundnut Oil gone up from Rs.40 to Rs.100 per kg. In , India imported 75 lakh tons edible oil, i.e. more than 50% of its consumption Indian food security is getting pledged to the foreign multinationals and Commodity Exchange players 12

Edible Oil Position (in Lac Tons) ( source: agriculture,food,commerce ministry) Oil –Year (Nov.-Oct.) Production in India Import (Nov.-Oct.)

FOOD INFLATION Comparison between BJP-NDA Govt. & UPA-Congress Govt. Price Rs/kg Item January 2010 Wheat Rice Sugar to 50 Edible Oil Dalda Chana Dal Tur/Mung Dal Besan Milk Kerosene/litre

Commodity Exchange – Ghotala Data of 2009 Channa Turnover 2,59,43,840 ton - Delivery 50,710 ton. Speculation % Jeera (Cumin) Turnover 21,82,923 ton Delivery 3,402 ton Speculation 99.84% Price went up from Rs.104 to Rs.146 per kg in 2009 Guar Seed Turnover 9,02,97,720 ton. Delivery 21,550 ton. Delivery 0.02%.and 99.98% speculation. Source : NCDEX & FCA

Commodity Exchange Ghotala Data of 2009 Turmeric ‘ Haldi ’ Turmeric ‘ Haldi ’ is ideal example of Commodity Exchange Manipulation Turnover 1,32,72,060 ton Delivery 3,880 ton Speculation 99.97% Price went up from Rs 38 to Rs130/kg Source : NCDEX & FCA

Commodity Exchange Ghotala Data of 2009 Potato Inclusion of Potato in the list of Forward Trading is reflection of how Commodity Exchanges are misused in India Turnover 32,53,020 ton, actual delivery 4,080 ton Speculation 99.70% and delivery 0.30% Price went up from Rs.6 to Rs.14/kg. Source : MCX & FCA

COMMODITY VOLUMEACTUAL DELIVERYSPECULATION MT % % GUAR SEED 9,02,97, TURMERIC 1,32,72, CHANNA 2,59,43, SUGAR 79,02, WHEAT 14,84, JEERA 21,82, POTATO 7,47, MAIZE 5,18, CHILLI RED 2,78, ALMOND 31, PS:All data is from NCDEX Commodity Exchange except Potato & Almond are from MCX Commodity Exchange. COMMODITY EXCHANGE MEANS MANUPILATION Details of Trade Volume, Actual Delivery & Speculation

What Government Says! Prime Minister Manmohan Singh – “We are moving towards double digit GDP growth Sharad Pawar – “Prime Minister & Govt. is responsible for Food Inflation” & “Price of sugar, wheat, rice are cheaper in India compared to America & England” Sonia Gandhi – “Congress will write to Govt. on Food Price Inflation” Chidambaram – “We are reducing the taxes on dog biscuits” Kamal Nath – “Poor people are now eating more food” Manish Tiwari, Congress Spokesperson – “Pawar – Agriculture Ministry must act to control Food Inflation” Finance Minister Pranab Mukherjee – “We are watching the situation” Supreme Court says “Globalization blinds us to Aam Aadmi’s Plight”

BJP Demands Removal of Food Articles from Commodities Exchange Forward Trading List Food Security & Creation of buffer stock Stop Economic Policy of Robbing Farmers & Looting Common Man Steps to bring down price of wheat,rice,sugar,dal Monitoring & Action against  Hoarders  Black Marketers  Multinationals/Corporate Manipulation/Profiteering Food for Kitchen (not for thought only) 20

Thank You Source of all data, statistics, information‘s Ministry of Agriculture, Food, Consumer, Commerce, Finance. RBI, Economic Surveys, Parliament Questions, CMIE, Planning Commission, NCDEX, MCX, FCA etc Information/Analysis gathered from 123 parliamentary questions, 24 RTI Applications & Dozen of Reports For your ready reference copy of presentation & 86 page data compilation made available to you 21