Inflation caused by bad governance: BJP chief

Accusing the Manmohan Singh government of neglecting agriculture, BJP chief Nitin Gadkari said on Thursday bad governance and speculation in the commodity market has resulted in high inflation.

"While the industry has grown by 19 per cent, the agriculture growth on December 2009 is negative at 0.2 per cent.

Inspite of this the government has provided a meagre Rs 900 crore (Rs 9 billion), i.e. 0.075 per cent for agriculture development of Rs 12 lakh crore (Rs 12 trillion) total Budget," Gadkari told a press conference.

Claiming that the present rate of inflation was the 'highest in the world', the BJP chief provided the example of China which has a larger population.

"Though the Chinese gross domestic product growth is 9.5 per cent, it has 2 per cent inflation and India 11 per cent. My question to the economist Prime Minister is can he deny that inflation in India is 11 against the global rate of 1 to 2 per cent?"

Despite immense potential India's GDP growth rate of 7.2 per cent was far less than what could be achieved, he said.

Stating that over 99 per cent of the total annual trading of over Rs 800 million was done on the basis of speculation at the future trading market, he said, "There must be an immediate ban on such trading if the government is sincere to bring down the rise in prices."

"While international price of wheat is Rs 8 per kg, the price in India is Rs 14.50 per kg. The international price of sugar is 17.68 per kg and the price in India is Rs 38 kg," the BJP president claimed.

"I want to ask the prime minister is it not true that the prices of food articles are 80 per cent higher than in the world market?" he asked.

He also questioned why the government estimate of sugar production in 2010-11 was 141 lakh tonne while industry estimated it at 178 lakh tonne.

"Why is the government estimate less than the industry estimate?

"Food inflation is 17 to 20 per cent for the last 20 week and I want to ask the prime minister where have things gone wrong. There is a need for correct economic measures."

He claimed that prices of most essential commodities like rice, sugar and dal were within reach of the common people during the National Democratic Alliance regime headed by Atal Behari Vajpayee.

The BJP chief said that his party has planned a big rally in Delhi on April 21 over price rise.