Being on the same page with the corporate, the cooperative giant IFFCO lost no time in demanding actions for unshackling the fertilizer sector with the wholesale price inflation hitting zero in November, its slowest level since July 2009.
The fuel inflation dropped to a five-year low and the rate of price rise in food items fell drastically due to favourable bases and declining global commodity prices, the official data released on Monday showed.
The RBI Governor Raghurajan Ram who has been playing too cautious, is under pressure from all sides to ease the rate. Dr. U S Awasthi tweeted “ #WPI #Inflation touching 0% for this month is an easing gesture for our #economy. The right time to free & unshackle #Fertiliser Industry.”
With retail inflation having hit a fresh low of 4.38% in November and industrial production at a three-year low in October, the latest wholesale price index (WPI) inflation data pile on the pressure on the Reserve Bank Of India (RBI) to effect the much-anticipated rate cut to boost the economy, at the bi-monthly policy review on February 3.
Recently, the Reserve Bank of India breathed fresh life into infrastructure projects by allowing flexible financing options for existing projects in the infrastructure sector and heavy industry.
On similar lines the fertilizer sector which is heavily dependent on import has been demanding policy reforms to tackle the situation. In the recently concluded seminar organized by the fertilizer producers of the country in Delhi, the Union Minister Anant Kumar was briefed about the macro-issues plaguing the sector.
With news of dipping inflation doing rounds, an emboldened Managing Director of IFFCO Dr U S Awasthi has renewed his demand.
The incumbent RBI governor is conservative and is hardly listening to any one including the union finance minister Arun Jaitley. I wonder why is he not removed.Is there dearth of sensible economists in the country—somebody who is a growth enthusiast?