Manipur-Evading Basic Issues

inflation rate (as distinguished from the point-to-point rate) in 1980-81 is likely to be largely the same as in 1979-80 (17.1 per cent)L Third, the 13.2 per cent rise so far in 1980-81 has taken place on top of a 21.4 per cent increase in the previous year. Lastly, the price increase in 1980-81 has taken place despite a bumper crop, whereas 1979- 80 had experienced a severe drought From a wider viewpoint, what is relevant is that the rate of inflation in the Indian economy is getting accelerated; it was about 12 per cent per annum in the Seventies compared to less than 8 per cent per annum in the Sixties. Further, inflation is no longer restricted to agricultural and agriculture- based commodities. The Economic Survey overplays the significance of petroleum prices, but even in 1980-81 the contribution of petroleum and fertiliser prices to the overall price rise was only 30;6 per cent, whereas sugar, khandsari, gur and edible oils contributed 18.9 per cent, seasonal commodities contributed 31.8 per cent (despite a good crop), and all other commodities 18.9 per cent.