| Subsidy burden may fall on diesel for commercial use, petrol.
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| Farmers may get subsidised diesel if the Left Front has its way after the new Congress-led government takes over at the Centre.
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| Although the subsidy burden is expected to fall on the prices of diesel sold to the transport and industrial sectors, and on the prices of petrol, the Left parties are not worried.
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| While Left Front leaders are refusing to speak on record after the stock market crash on Monday, they are emphatic that the new coalition will pursue farmer-friendly policies.
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| Stock markets saw an unprecedented fall after some Left Front leaders had spoken out against the disinvestment of public sector units and sought more subsidies for the farm sector.
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| This was evident even in the press release issued by the Communist Party of India (Marxist) yesterday, in which it said, “The economic policies should be oriented towards providing relief to ordinary people, generation of employment, giving priority to agriculture and for the uplift of the rural poor.” Subsidised diesel for farmers will be a part of these policies.
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| “Our priority is clearly the farmer and the rural poor. They should be given subsidised diesel for use in agricultural practices. They cannot afford the commercial price that is charged from other users,” a Left Front leader said pleading anonymity.
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| He did not see any problem in case petrol prices were to bear the burden of this subsidy. “Petrol is mostly used by the rich. They are in a position to withstand any hike.”
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| When asked about the lower middle-class, which largely uses two-wheelers, he said, “This class is also better off than the rural poor.”
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| However, the Left Front has been arguing that there is no case for oil companies to raise the prices of petrol, diesel, kerosene and LPG despite a spurt in the international prices of crude oil.
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| The Front has said crude constitutes only 20 per cent of the retail prices of petrol and diesel. The balance is made up of levies and marketing margins of oil companies.
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| Therefore, it should not be difficult to adjust the rising crude oil prices in the existing retail prices of the two auto fuels.
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| Regarding the subsidy on LPG and kerosene, Abani Roy, general secretary of the Republican Socialist Party (RSP), a key constituent of the Left Front, said it should be revisited. However, the party was against scrapping the subsidy in one go. |
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