India vs pakistan is like onion vs tomato

Recently the rise in food prices was a concern for the govt as the food inflation alone has contributed heavily to the overall inflation which was almost 16%, govt has promised to bring the inflation down to 7% while the hope of economic growth of around 8 to 9% is likely to be maintained, but as per the current scenario it seems hard to get the bounce back in economic activities all on sudden as the raw material prices are increasing day by day and as a result of which industrial output will surely slow down. With the rise in RBI’s repo rate, liquidity seems to be a concern while the gap between the deposit vs lending has widened recently creating a problem for banks in terms of liquidity. All these factors combined together create a kind of negativity in the market. High rise in consumables are not offset by the equal rise in wages, hence the purchase parity will surely be distorted resulting in lesser demand for consumables, household goods, industrial goods. Supply side will react according to the demand and the production of finished and semi-finished goods will slow down due to rise in input cost.
Amid all these negative economic waves we hear news about silly onion vs tomato war between India and Pakistan. When onion prices reached a all time high our govt had no other option except importing tons of onion from across the border. Thorough land route truck loads of onion got into the Indian territory to meet the appetite of the northern states then a time came when Pakistan all on a sudden imposed ban on onion export to india, there might be a valid reason behind that, yes as per news due to truck loads of onion export to India onion price in Pakistan skyrocketed which caused severe rage and anger. Now Indian traders have banned export of tomato and other key food commodities to Pakistan just to take revenge which sounds extremely silly.
By Dipti Prasad Padhi

By : | Category : Business and Economy| Date : November 10,2011

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