Kerala   

Need for effective mechanism to monitor prices

Pay revisions are meant to offset increases in the cost of living which took place ever since the previous revision. But here they are seen to trigger yet another round of price rise. The latest pay revision given to the Government employees and teachers will in all probability lead to the same situation. What do you think should the Government do to prevent that? Our readers respond:

Formulate stringent legislation

Every pay revision sets off price rise. Consequently, what is meant to offset the rise in the cost of living since the previous pay revision is sacrificed at the altar of inflation. A vicious circle that invariably sets in makes life miserable for the common man. All this happens as no mechanism is in place to ward off price rise that follows pay revision.

In fact, there is absolutely no justification for such induced hikes.

It is as if the business community is entitled to a portion of the bounty received by the salaried class. The ground reality is that the spiralling prices break the backbone of those whose income remains steady or is on the decline. Therefore, the Government should step in to arrest price rise on such occasions. If existing laws lack enough teeth for the purpose, stringent laws should be brought in. Employees' organisations should prevail upon the trading community to see reason and desist from such tactics. If prices do not shoot up and employees offer better services following pay revision, public resentment on this count can be obviated too.

N.K. Vijayan

Kizhakkambalam

Explore other options

The Government should think of an alternative to holding the price static by either making all consumer items available at fair price shops such as Maveli stores or offering some relief by way of reducing electricity charges, customs duties, value-added tax, sales tax and income tax to the manufacturers and the distribution links without categorising them.

It should also constitute a monitoring authority to look after the possible manufacturing cost and profit rating after covering the incidental charges in various stages till the commodities reach the common man. If a congenial atmosphere develops, the Government may think of stopping the practice of revision in pay scale to a limited extent.

N.A. Veeran

Thrissur

Prevent black marketing

A rise in the cost of commodities can adversely affect the lifestyle of ordinary people. The Government should set up a system to distribute essential commodities through the public distribution system. Most of the commodities should be traded under the supervision of Government- authorised institutions such as Supplyco, Labham and Maveli Stores. The Government must insist on a particular price for a particular product.

It must take strict action against black marketing and hoarding. The public should also discourage such practices. Frequent inspections should be conducted by the Government for the proper conduct and smooth functioning of the market machinery.

Deepthi Vimal

Haripad

Arrest price rise of commodities

In practice, there is no quinquennial revision in Kerala. The last pay revision was in March 1997. Now, the Government has decided to revise the pay owing to the compulsion of electoral prospects.

Pay revision is done in due course in public sector units, and the banking and insurance sectors. The organised sector is able to meet its demands by its organised strength. It is the unorganised masses that find it difficult to cope with the rising prices. In fact, price hike is attributed to various factors, including pay revision. Even an enhanced DA will put pressure on the economy. The conundrum can be sorted out if the Government takes steps to arrest price rise. Unless and until the rise in prices is controlled, the clamour for pay revision from the organised sector will never stop.

V.P. Ramesan

Thripunithura

Increase productivity

With an increase in circulation of money, if the supply and demand of commodities remain unchanged, the cost is definitely going to increase. This swing will continue till an equilibrium is reached between the money supply and availability of commodities. When such a balance is achieved, we find the purchasing power of money has not greatly altered. To a certain extent, this mismatch is compensated by providing dearness relief to the employees. This game of increase in pay and the rise in prices go side by side without seriously affecting the original ratio of balance.

In the case of employees earning regular wages, the net unbalancing effect is marginal. However, in the case of the unorganised sector, the sudden availability of extra money in the market is going to cause appreciable discomfort and hardship. If real compensation has to take place, the purchasing power of money has to be increased and that will be possible only if the productivity of commodities is increased. Therefore, the real need is to increase productivity so that the purchasing power remains relatively high. If this is achieved, the general living standard increases with the hike in wages.

Capt. O.B. Nair

Poonithura

Lay stress on productivity

The only answer to the problem lies in insisting on increased productivity from the employees whenever a pay increase is granted. Many pay commissions usually recommend this, but it is never discussed, let alone accepted and implemented by politicians who are only anxious to protect their vote banks of organised labour. Look at the misplaced enthusiasm that was displayed by the present State Government to implement the pay commission recommendations. With elections round the corner, it was not morally correct to commit a new Government to such huge additional financial outlays. The permission granted by the High Court and the Election Commission to make this payment before the elections is also surprising.

If we want to get out of the vicious cycle, we have to sooner than later adopt higher productivity norms and downsizing of the Government.

P. Jayaraman

Kochi

Check spending sprees

It is a curious observation that pay revision is behind the hike in the prices of commodities. In fact, there is no direct relation between the increase in the salary of the people and the rise in prices of goods. On the other hand, salary revision of Government employees is directly related to the increase in the price of goods and services. If such revision is not done periodically, employees will have a tough time while everything surrounding them such as the income of employees in the private sector, income of the diaspora and the prices of goods go up. The market price of a given item increases only under conditions of scarcity of its availability or an increase in its demand.

People tend to spend lavishly and buy things even if they can be avoided. This is the real cause for the rise in prices of commodities in the market. If only people restrict their purchase to what is unavoidable and essential, the prices will not go up much, despite the pay revision.

K. Ram Das

Haripad

Restrict hike in prices

It is a fact that people spend more when they earn more. Income and expense most of the time gets tallied. This is not true when it comes to Government employees. The income of the Government employees is more or less constant and they work hard to make ends meet hoping things will take a turn for the better when pay is revised. The problem is that pay revision comes once in a blue moon and price rise is a daily occurrence. This disparity should be offset.

The Government is the key player here. Keeping the cost of living under check is not so simple a task. Still there can be a market system that can restrain price rise. The frequency of pay revision should be reduced to a minimum of once in every Government's tenure. Since pay commission recommendations are potential vote swingers, every Government will do something constructive to keep back price and cost of living.

Jayaprakash A.P

Kottayam

Kizhakkambalam

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