CPM warns govt against wrong steps to check inflation

The CPI(M) on Tuesday urged the government not to take improper fiscal measures, hoping it would bring down inflation, ahead of the Budget. In a statement, the Politburo said though the government has cut customs duty on several items including cement, capital goods, project imports, metals and chemicals, on the plea that this is required to bring down inflation, it would be of little help in keep it under check.

“Similar cuts in import duty of wheat and pulses in the recent past have not succeeded in bringing down inflation. Such drastic cuts in import duty on manufactured items would have adverse impact on domestic producers leading to deflation and unemployment,” the statement said.

It asked the government to take urgent steps to check price rise of essential commodities by taking recourse to previously suggested measures such as a ban on forward and futures trading in essential commodities, reverse its recent decision to allow export of sugar and slash fuel prices.