Inflation due to rise in temperature… IG News

From Arthanagari : Mahesh Deshpande

There is a possibility of increase in the price of CNG, PNG used in vehicles. There are many reasons for rising inflation but it has been concluded that temperature rise is one of them. As a result of this, it has been seen that four crore beneficiaries have turned their backs on Ujjwala Yojana in the last few years.

Although there is cultural harmony in a country full of diversity and some festivals are like festivals, the price of gold is not the same. The gold rate varies from city to city and state to state. There is a difference between gold price in Jalgaon and gold rate in Ahmedabad. A major reason behind this is the cost of transportation. There is a huge difference in the price of gold between Delhi and Chennai or Mumbai and Kolkata. But recently a bullion exchange was started in Gandhinagar in Gujarat. Therefore, a single price of gold will be fixed in the entire country. As a result, no matter where gold is bought in the country, there will not be much impact on its price.

Gold can be exchanged through ‘India International Bullion Exchange’. Gold and silver can be imported through this. This place has a potential of 125 tonnes of gold and 1000 tonnes of silver. It will be a transparent platform for bullion trading. The ‘India International Bullion Exchange’ will have three vaults.

Only qualified jewelers can import with the help of international bullion exchange. Registration with ‘IFSC’ is required to become qualified Jewellers. Minimum net worth of 25 crores is required to import. Besides, bullion business should account for 90 percent of the turnover in the last three years. This scheme will provide a big platform for gold import. This will connect India to the global bullion market. India will also decide what the price of gold should be in the coming period. This will open a new way of importing bullion in the country. Imports can become cheaper through ‘India International Bullion Exchange’. The bullion exchange will bring international companies to one platform. Both national and international companies will benefit from it.

Gas will be more expensive

CNG and PNG prices, however, are likely to increase as gold prices stabilize. The gas authority has increased the prices of natural gas supplied to city gas companies. GAIL hiked prices by 18 percent during monthly review. The gas available to ‘City Gas’ has now reached the level of 10.5 dollars per pump. Due to rising costs, companies are likely to increase the prices of CNG and PNG. Green Gas recently hiked CNG rates in Lucknow by Rs 5.3 per kg to Rs 96.1 per kg.

The latest changes have made gas prices three-and-a-half times what they were at the end of March and six times what they were last year. , India imports half of its requirements. Hence GAIL is meeting the demand through domestically produced and imported gas. GAIL’s expenses are also increasing as the gas prices in foreign markets have reached a high. Therefore, GAIL is transferring the proceeds from increased tariffs to city gas companies in India. In such a situation, it is feared that the city gas companies that deliver gas to the consumers may transfer the increased cost to the consumers.
CNG prices rose by 74 per cent in Delhi and 62 per cent in Mumbai in a year. They can grow even more.

According to rating agency CRISIL, rising temperature in the country is the main reason for rising food prices in early 2022. Consumer price index-based inflation is estimated at 6.8 per cent in 2022-23 given the pressure on food prices in the current financial year. This rate is slightly higher than the Reserve Bank’s estimate of 6.7 percent. The rate of inflation has been consistently higher than the RBI’s expected level (two to six percent). Currently, food accounts for 39 percent of the consumer price index. Crisil Research has said that the main reason behind food inflation is lack of supply. The reason for the short supply is the sudden rise in domestic temperatures along with the Russia-Ukraine war. The rating agency said that food inflation is expected to remain at the level of seven percent. The average temperature in northwest and central India reached a 122-year high. Crops like wheat, groundnut, millet etc. have been affected due to increase in temperature.

There is no demand for ‘Ujjwala’

The problem of Ujjwala Yojana, which was started with much hype, has come to light only from the government figures. The government clarified in Parliament that 4 crore 13 lakh beneficiaries of Ujjwala Yojana did not bring LPG cylinders home even once. Commercial gas cylinder rates were cut on the first day of August; But domestic LPG cylinder prices are ‘as they were’. The government has retained the subsidy only for the beneficiaries of Pradhan Mantri Ujjwala Yojana. Subsidy of remaining LPG customers has been cancelled; But it was seen that many beneficiaries of Ujjwala Yojana did not take LPG cylinder even once. Information also came forward that under the Ujjwala Yojana, 7.67 crore beneficiaries took the cylinder only once. Leader of Opposition Mallikarjun Kharge had sought information related to the beneficiaries of Ujjwala Yojana. During 2017-18, 46 lakh Ujjwala Yojana beneficiaries did not refill a single cylinder. 1.24 crore in 2018-19, 1.41 crore in 2019-20, 10 lakh in 2020-21 and 92 lakh beneficiaries in 2021-22 did not fill the cylinder even once. In the year 2021-22, out of total 30.53 crore domestic gas consumers, 2.11 crore consumers did not refill their gas cylinders even once. At the same time, 2.91 crore consumers filled their domestic gas cylinders once. It seems that rising inflation has made deep ripples in this sector as well.

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