These days, inflation has become a global problem. Food prices are skyrocketing and we can discern an impending humanitarian crisis in the near future. Growing energy expenses, competition between biofuel and food demands, variations in global weather and changing consumption patterns in China and India have been some of the reasons behind soaring food prices.
It is projected that inflation in Nepal will remain around 7% in 2008. But at a time when the neighboring countries are gearing toward maintaining low and stable inflation, the Nepal Rastra Bank has not taken any effective step to lower the rising inflation through better economic leadership.
India has been taking serious measures aimed at curbing inflation that has reached as high as 7.14%. It has banned export of commodities like rice, cement and lentils, hiked interest rate and increased cash reserves for commercial banks. China also said that it will pay farmers more for rice and wheat, trying to increase output and rein in surging inflation. Warehouse owners and traders in the Philippines found to be hoarding rice would be charged with “economic sabotage”, which carries a life sentence.
The FAO predicts that global food stock of 405 million tones today is the lowest since 1980. Similarly, the WFP Nepal has projected that more than 3.8 million poor Nepali people have been put in a vulnerable position because of the poor harvest and continuing food shortages and skyrocketing prices. Further, the average household food stocks in Mid and Far Western region are down by half compared to a year ago and the officials estimate that food prices will increase by 10% every moth till the next harvest. It is time the stakeholders concerned forwarded necessary policies aimed at moderating inflation and averting the disastrous food crisis.
Subash Dahal
Kathmandu
SOURCE: Letters to the Editor. The Kathmandu Post. April 26, 2008
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human rights
