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Indian economy hit as retail inflation reaches 7.35%, vegetable prices rise by 60%

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

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Indian Economy

In another setback to the Indian economy, the retail inflation in India rose by 7.35% in December 2019, which is the highest since July 2014, largely due to the increase in vegetable prices and phone tariffs.

The upsurge was largely due to the rise in food prices, which account to more than a third of Indian household’s budget, and the overall food inflation was 14.12% in the month of December, according to the Ministry of Statistics and Programme Implementation.

The vegetable prices have risen by 60%, while the price of pulses saw an increase by 15.44%, food & beverages at 12.16%, meat & fish by 9.57% and spies by 5.76%, mostly pertaining to the supply shocks caused largely by extreme weather events.

Prices of potatoes, onions and tomatoes, the three most important vegetables in the CPI basket, increased by 37%, 328% and 35% respectively in December on a year-on-year basis.

Food Price Inflation

Food Price Inflation

Retail inflation based on the Consumer Price Index was 2.11% in December 2018 and 5.54% in November 2019.

The economic growth of India was 4.5% in the third quarter of last year that ended in September 2019 and is expected to be to at 5% for the last quarter going into 2020.

Consumer Price Index. (Source: CMIE)

Consumer Price Index. (Source: CMIE)

Monetary Policy Committee (MPC) has paused the cutting of interest rates due to the rise in retail inflation and they will use the December data when they sit out for the meeting in February.

Trends:

According to CMIE report, over the last four months, food prices and fuel prices have seen a significant rise which in turn has affected the overall CPI.

Food CPI in February 2014 was 7.89%, which has now risen to 14.12%.

While the overall CPI in February 2014 was 7.27 %, which has now scaled to 7.35%.

Future:

State Bank of India (SBI) has projected the rate of retail inflation to breach eight per cent in January 2020, as per a report in Businessline. It also cautioned that if food price inflation does not revert, the economy can slip into stagflation.

India News

Suvendu Adhikari warns action over remarks against Netaji 

Suvendu Adhikari directed police to take stringent action against those making derogatory remarks about Netaji Subhas Chandra Bose on social media.

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West Bengal Chief Minister Suvendu Adhikari has directed the police to take stringent action against people making derogatory remarks about Netaji Subhas Chandra Bose, saying that nobody would be spared irrespective of their political or official position.

The direction came days after BJP MP Nagendranath Roy, popularly known as Ananta Maharaj, described Netaji as a “war criminal” and questioned his leadership and the role of the Azad Hind Fauj in India’s freedom struggle.

Speaking to reporters at the state secretariat Nabanna, Adhikari said the police had been instructed to arrest those behind such remarks on social media.

“I have asked the police to take stringent action against those making derogatory remarks against Netaji on social media. Police have been directed to arrest those behind this,” he said.

Adhikari says law applies equally to all

Asked whether action would be taken against Ananta Maharaj, Adhikari did not name anyone specifically but said the law was equal for everyone.

“I will not name anyone, but the law is equal for MLAs, MPs, leaders of any party, government officials, or police officers,” he said.

Adhikari also urged people who have posted derogatory comments about Netaji on social media to delete them immediately and issue an apology.

However, he cautioned that deleting a post would not necessarily prevent police action, saying the police would independently decide what action should be taken.

“But even deleting the post may not help, as the police will make the final decision independently,” the chief minister said.

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India News

Air India Phuket-Delhi flight faced multiple warnings before 300-foot altitude loss

Air India flight AI2379 recorded multiple hydraulic, autopilot and flight-control warnings before a sudden 300-foot altitude loss on August 4.

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A maintenance report from Air India flight AI2379, which operated from Phuket to Delhi on August 4, indicates that the aircraft recorded multiple technical warnings around the time it experienced a sudden 300-foot loss of altitude during cruise.

The incident injured several passengers and crew members. Air India initially described the event as turbulence-related before removing the reference to turbulence from its later statement.

The Airbus A320neo was carrying 137 passengers and eight crew members. The aircraft landed safely in Delhi at 11:07 am, according to Air India’s updated statement.

Air India changed its description of the incident

The maintenance report was printed in the cockpit at 11:14 am after the aircraft landed in Delhi.

At 1:14 pm, Air India said the aircraft had experienced a “brief in-flight turbulence-related event during cruise”, resulting in a momentary change in altitude. The airline initially said that a small number of passengers and crew members had minor injuries and were taken for medical assessment.

Five hours later, at 6:55 pm, Air India issued an updated statement. The reference to turbulence was removed, with the airline instead describing the incident as a “sudden loss of altitude during cruise”.

The revised statement said 13 passengers and four crew members sustained injuries and were taken to hospital for medical evaluation.

However, the statement did not mention the hydraulic warnings or other technical issues recorded in the maintenance report.

Multiple hydraulic warnings were recorded

According to the report, warnings indicating low pressure appeared in all three hydraulic systems at around 9:32 am. Low fluid levels were also recorded in two hydraulic reservoirs.

The report also indicated that the autopilot disconnected at around the same time and that faults were flagged in the aircraft’s left and right elevator controls.

Further warnings followed. At 9:33 am, a warning was recorded for the right front emergency exit door, while another warning involving the right rear door appeared at 9:35 am.

At 10:16 am, the aircraft’s Engine 1 anti-ice system recorded a fault linked to a valve pressure issue. The autopilot disconnected again at 10:52 am.

A warning on an aircraft maintenance report does not necessarily mean that a system completely failed. However, the combination of hydraulic, flight-control and autopilot warnings is significant and would warrant investigation by aviation safety and maintenance authorities.

Pilots derostered pending inquiry

The incident is also being examined in connection with the pilots.

Both pilots of the Phuket-Delhi flight have been derostered pending an inquiry.

The pilot in command, Sudeep Vashistha, reportedly tested positive for psychoactive substances during post-flight screening in Delhi. A subsequent test was also reportedly positive, with sources saying it confirmed marijuana use.

Vashistha had also disclosed in an internal flight safety statement that he had been experiencing sleep difficulties and had been prescribed medication by his family doctor.

Sources said the pilot was not in his seat alongside the co-pilot when the aircraft suddenly dropped 300 feet. The pilot and objects inside the cockpit reportedly floated up during the sudden altitude change, while passengers who were not strapped in at the rear suffered injuries.

The investigation into the incident is ongoing.

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UP launches cow urine collection pilot in Bulandshahr, SP calls it a Scam

Uttar Pradesh has launched a pilot project to collect cow urine in 15 Bulandshahr villages, with SP calling it a scam.

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The Uttar Pradesh government has launched a pilot project to collect cow urine from farmers in Bulandshahr, with the initiative aimed at creating an additional source of income for farmers and rural women while helping maintain cows that are no longer producing milk.

The collected cow urine is expected to be used as a raw material for agricultural purposes, with the possibility of reducing reliance on chemical formulations. If the pilot is successful, the government plans to formulate a formal policy and expand the initiative across Uttar Pradesh.

The pilot covers 15 villages and is being implemented through a Farmer Producer Organization (FPO) led by Dr Praveen in Narsaina village of Syana tehsil.

Around 500 litres of cow urine are currently being collected every day. There are plans to increase the procurement rate to ₹20 per litre in the future. Storage tanks with a capacity of 200 litres have also been installed in the villages.

Rural women to earn through collection

Women in the villages are playing a key role in the collection process. Those involved in collecting cow urine are being paid a commission of ₹2 per litre, providing them with an additional source of income.

The initiative reportedly began with the participation of around 300 women, who have been made shareholders.

SP alleges election funding scam

The Samajwadi Party has criticised the initiative, calling the cow urine procurement scheme a “scam”.

SP spokesperson Mohammad Azam Khan alleged that the scheme was being orchestrated to raise funds for elections. He also alleged that cow shelters and the cows housed there were not safe in the state and claimed that the initiative would not lead to development.

These claims are allegations by the Samajwadi Party and have not been established as facts.

BJP hits back at Samajwadi Party

Responding to the criticism, BJP spokesperson Hero Bajpai said the Samajwadi Party finds fault with every development scheme.

He also claimed that the opposition party was unhappy with benefits reaching the Yadav community, which he said is the section whose interests the Samajwadi Party champions.

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