The inflation is going up; the price of every commodity is touching the sky. The sweets are no more sweet because the sugar price is bitter.
We all are wondering why the price of all commodities are going up ? The price of daily needs is out of control of government. The Finance Minister says it’s all because of MONSOON and the agriculture minister doesn’t know when the price of commodities will be in control, obviously he is not an Astrologer, neither has he claimed.
Our great economist Prime Minister is as usual mum. He is a great economist, he knows how to open the market, he had done this in eras of nineties, and he knows how to decontrol. He is master in decontrolling the market, he has recently decontrolled petroleum products price also. Why are you expecting him to control ? Your expectation of controlling price from our great Prime Minister is not justified because he is master in decontrolling everything; even the Maoists are not in control!
I have never understood economics better, and the chapter on Demand & Supply, which determine the price, is still not understood by me.
Some says in simple language that price of a commodity depends on its demand & supply. The more the demand and less the supply, the price will rise and if the demand is less and supply is more the price will decline, keeping few others factor constant.
Let’s discuss about Sugar, which is talk of the town. The sugar price is soaring, means there is scarcity of sugar in India. The supply is less in comparison to the demand. It seems simple or at least we can say this is one of the reasons. Keeping in mind the scarcity of sugar supply in India our great economists Prime Minister should have taken the decision of importing sugar, to increase the supply to meet the demand.
But the Sugar is only white the game behind it is official black.
On 15th of February, 2010 the Ministry of Commerce ( just below the nose of our great economist Prime Minster, obvious with his consent & direction ) issued an Order vide Public Notice No.41 / 2009-2014 allocates exports of 10,000 MT ( Ten thousand metric tones ) of white sugar to European Union.
The export order of 10,000 MT of sugar will again increase the scarcity of sugar in Indian market thus forcing the price to increase. The above order states that it is issued in PUBLIC INTEREST.
The government of Dr. Manmohan Singh was sleeping for next 8 days and suddenly on 23rd of February, 2010, the new order of Ministry of Commerce vide Public Notice No.45 / 2009 – 2014 withdraw the earlier order of exports of 10,000 MT. of White Sugar, which was allocated to M/s Sugar Exim Corporation Limited, New Delhi. This order also states that it is issued in PUBLIC INTEREST.
Thus both the order of Export of 10,000 MT of white sugar and next order after 8 days of withdrawn of export order was issued in Public Interest. I can understand Mr. Prime Minister that both the orders were in Public Interest, but can we common public dare to ask whose interest was being fulfilled between 15th Feb to 23rd Feb, 2010. I know as usual you will keep mum.
The hue & cry made during those periods on sugar price forced our great Prime Minister to understand the basics of Demand & Supply theory on Price. The memory of Public in whose interest the Order were issued is short, we know this and even the Prime Minister.
The business should go on, because business generates money, and every activity is for money. The exports of White Sugar will bring money and as no exports made there will be no money but if exports of 10,000 MT of white sugar is made then price will rise.
The task is difficult, money should get generated because our earlier Prime Minster stated money depreciate while its move from New Delhi to a village. Thus money should move, and for that exports of Sugar should be done in such a way that the supply should not get affected in India, great economist mind got involved and here we say yes our Prime Minster is great economists.
A Order by Ministry of Commerce was issued on 15th June, 2010 vide Public Notice No. 75 / 2009 – 2014 which states that 10,000 MT of White sugar will be exported by M/s Indian Sugar Exim Corporation Limited subject to condition that equivalent quantity of sugar will be imported by M/s Sugar Exim Corporation Limited.
Now if 10,000 MT of sugar will be exported and 10,000 MT will be imported then what is the net result ? The net result is zero but the business has happened of 20,000 MT of sugar. Once business has happened money will get generated, movement of money will be there and as told by Late Rajiv Gandhi money depreciates when its moves. The depreciation will be enjoyed by some one.
Now at what price the export and import of sugar will happen ? Same price ? No way if same price and same quantity of sugar export & import is done, then what is the use of this activity ?
Let’s think in Public interest & Nation Interest, the export price will be high and import price will be lower. If this is true then the nation from which we will import is dumb ? Can’t that particular nation export sugar to the nation which we are planning to export, on lower price than us ? The export price of sugar will be high and import lower if the quality of import sugar is poor in comparison to export quality of sugar and in that scenario we as Indian are not having the right to eat sugar of better quality produced by ourselves.
Now let’s think in the interest of those economists who think this order of 15th June is perfect. The export price should be lower than the import price means export at lower rate and Import at higher rate. Then there can be chance of commission. Business will happen then profit will happen, money will move, money will move then it will depreciate, no one will know where it depreciated.
It’s Official now White Sugar is BL………
