ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Kirloskar Pneumatic Company Limited

intervention in the food market and there are already reports to that effect (see Times of India, November 17) private stock holding of food- grains might increase, for now the imputations about the future course of prices will be one-way, that they can only rise. Once prices start rising,. in- flationary expectations will be confirmed, further strengthening them. The government's efforts to prevent the reappearance of inflation by unloading its recently-acquired stocks might at best delay it somewhat and the price-dampening effect of the release of government stocks might neutralise the price- chancing effect of the rue in private stocks. Nevertheless, we might end-up with the curious outcome that the present intervention of the government in the food market, by arresting a fall in prices, might only result in a rise in private stocks rather than in public stock of foodgrains.

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