Taxes and commissions on primary products at both Centre and States need to be slashed

ASSOCHAM Reaction: Consumer Price Index Numbers for June 2014

Welcoming the moderation in the provisional Consumer Price Index for the month of June 2014, apex industry body ASSOCHAM said that indications that growth in the retail prices is moderating offers a big relief to the Nation and its policy makers

The existence of numerous tiers of agents in the consumer product distribution results in higher retail inflation which in turn leads to wage-price spiral, besides, rising nominal wages, supply constraints especially in infrastructure, demand-supply imbalances in various regions are pushing the retail prices higher and higher, said Mr D.S. Rawat, secretary general of ASSOCHAM.

 

ASSOCHAM has suggested that the Government needs to come out with a definite time bound roadmap for improving the management of supply of consumer products with the following elements:

Scrapping of the Agriculture Produce Marketing Committee (APMC) Act, thereby allowing farmers to sell their produce freely.

Taxes and commissions on primary products at both Centre and States need to be slashed.

Private sector must be encouraged to invest at the back end to streamline value chains.

Rural Development schemes must be utilized to create productive infrastructure

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