CHAPTER - 27

MOTION REGARDING RISE IN PRICES OF ESSENTIAL COMMODITIES

Lok Sabha , 25 November 1980

EDITORIAL NOTE

Y. B. Chavan was familiar with phenomena of rising prices. He dealt effectively with the problem during his tenure as the Finance Minister.

In 1980, the prices were showing continuing increase. In this speech Chavan while sharing his own experience, advocated greater titter to the agricultural sector which in recent years had greatly contributed to the country’s self-sufficiency in  foodgrains, sugar etc. He also advocated subsidy for certain essential items particularly for the poor below, the poverty line.

Shri Y. B. Chavan (Satara) : Mr. Chairman, Sir, I think I am speaking practically at the fag end of the debate and I will not take much of your time. I will briefly mention some of the points that I have in my mind. I do not consider this discussion on the prices as a technical discussion on the prices in isolation. It is, as a matter of fact, a discussion on the functioning of the economy as a whole. The price rise or the price fall is an index of the functioning of economy as a whole and what is the health of the economy? Normally, we hear the health of the economy when the economic survey is submitted at the time of the Budget debate or Budget discussion. I think this is the time, when, I can say from my own experience, the economic adviser or economic specialist in the Ministry of Finance is about the start writing his review. Really speaking, I take pity on the man. What can he write on the paper about it except to say that there was good monsoon and nothing more? Possibly he will, have to stop there!

I am reminded of a very fine and the wittiest congress leader Dr. Pattabhi Sitaramaiah. More than three decades ago, we were in my district. He came on a tour. Naturally, at that time, we were not in a position to provide a posh car to him. We got only a secondhand car and provided that car to him. He toured the district. When he came back, we asked him, “Were you comfortable?” He said, “Yes, yes, we were comfortable except the horn, we heard every other part of the car was making a noise.” If we look at our economy and if I have to speak about our economy, I can say on the same line that except prices, everything else is falling. This is the position. I hope the Finance Minister would not take it amiss, because he is trying to do his best of the difficult situation. We know about it. This is not a personal criticism. This is the situation in which we have driven ourselves, whether it is due to this government or another government. But, what is the present situation that we must present here? We demanded a discussion on this because we wanted to reflect the feelings of the people of India today by saying that they are suffering under the pressure of prices. That is why we wanted to censure the government. You did not allow us to do that. Now, we are discussing price situation. But even discussion can censure the government, as a matter of fact, and that is what is being done. What is the situation of the economy? What are we going to so about the present situation? I do not want to go into details and give statistics which everybody has practically provided here. There is no doubt that there is a price rise; whether it started in 1977 or 1978, I can say about it from my own experience, because I happened to be the Finance Minister during those horrible periods of price rise of 1972-74.

I can tell Prof. Madhu Dandavate for his information that the price rise started falling some time in October 1974.