Monday, February 20, 2017

908 Better late than Never! This adage is true in respect of India trying to rescue Indian Steel Units


Better Late than Never! This adage is particularly true in respect of India's Steel Import Policy. India is a country which is very rich in Iron Ore Reserves. But still, under the UPA 1 and UPA 2 Governments, Indian Steel Industry reeled under stress from import of Steel from China. With the exception of Tata Steel (TISCO) Jamshedpur, most of the Steel in India is made in Public Sector. Indian Public Sector Units, have mostly been Model Employers. They pay their taxes honestly. They do not bribe anybody. They do not maintain their Factories in such a way that they harm Environment. They do not employ children or organise Sweat Shops. In these circumstances, we should not expect them to compete on par with Chinese Steel Industry. There, Sweat Shops and Exploitation of unfortunate Chinese Labor is common. Here is a BusinessLine NewsReport: Click here to go to BusinessLine to study this report.

During the reign of UPA 1 and UPA 2, and the previous 1999-2004 Vajpayee's NDA Government, India was exporting Iron Ore at throwaway prices to China, and other countries, and used to import Chinese Steel. That resulted in jacking up of iron ore exporters, in the iron ore prices quoted to Indian Public Sector Steel Units. Indian Public Sector Steel Units experienced iron ore shortage, while exporters like Gali Janardan Reddy made billions from legal and illegal iron ore exports.

BALANCE OF TRADE DEFICIT WITH CHINA


India has an extremely adverse Balance of Trade Deficit with China. The deficit is raising year by year. We even forgot that China had occupied 36,000 sq.km. of Indian Territory in Ladakh and NEFA (North Eastern Frontier Agency NEFA, the present Arunachal Pradesh).

STEEL IMPORTS FROM CHINA OUGHT TO HAVE BEEN TOTALLY BANNED


Mr. Chaudhary Birender Singh, India's Steel Minister is reported to have said, on 17th Feb. 2017:

"...We are looking at coming out with a provision in government tenders to mandate using domestically manufactured steel for the grades that are available in India. The contractor can import grades of steel that are not available in the desired quantity in the country. ..."




ybdonkey's personal views which are not intended to be imposed on others


Why the above policyis going to be introduced, only in Government tenders? The policy can also be applied to new Industrial Units in Private Sector. It can be extended to Private Sector Construction and Infrastructure Projects. When something can be made in the country locally, why should Indian Private Sector import Steel?

Scope for Money Laundering


Reckless imports by Private Sector, can also lead to Overinvoicing of imports, Physical quantifies under-importing, facilitating Money Laundering by Private Sector Industrialists.

There is nothing wrong in Protectionism. The Top Industrial countries, Business countries indulge in Protectionism recklessly, latently. But they preach and try to enforce Free Trade on countries like India which face Balance of Trade Deficit, and Balance of Payment disequilibrium.

India has millions of Unemployed Youth, who are to be shown some source of livelihood. If Steel is made in India, employment opportunities, will improve, particularly in Tribal States like Jharkhand, Chattisgadh, Orissa. We know that European countries and American countries have a policy of reducing and restricting Visas to Indian Labor. But then, why nobody questions their Labor Protectionism? If Free Trade in Goods and Services is an ideal to be pursued with Great Zeal, why not there be Free Exchange of Labor? Why Racialism prevails in Europe and America? Let the Labor move freely across the World, without any boundaries!

To continue. सशेष. ఇంకా ఉంది.

Saturday, February 18, 2017

907 (2 of 10 series) An Exports-weak country should not turn dependent on imports


This is in continuation of post NO. 906 Click here to see post No. 906 at this blog. India is an Export-weak country, which means Export-income will be sluggish. If imports are not controlled, Balance of Trade Adversity will aggravate, leading to a Balance of Payments Crises. India has experienced such crises prior to 1991, which might have led to devaluation of INdian Rupee in the past. The Balance of Payment situation has easened after India started inviting and getting Foreign Investments into Indian Companies, by extending tax concessions, cheap land, and LPG (Liberalisation, Privatisation, and Globalisation). Though India may not be going to face a Balance of Payment Crises in short run, such possibilities cannot, altogether be ruled out, especially if Foreign Institutional Investors, Foreign Individual Investors, their Computer algorithm-driven Investment Programs decide to withdraw some investments. As India does not have Crude Oil Reserves, India's Oil Imports have become uncontrollable, compounded by the multifold increase in the number of bikes, cars, and trucks in the country. Import of food grains, lentils particularly Red Gram dal splits, onions, raw sugar for processing by Sugar Mills etc. have become nearly unavoidable to control domestic shortages, black-marketing, and spiralling rices.

Here is a link to RSTV (Rajya Sabha TV) report which deals with import of lentils etc. by India. Click here to go to RSTV website and study the steps taken by Government of INdia to import of essential goods, and to control black-marketing by traders. A few lines from the Report are worth noting:--

Date 1:04 PM, 19 Jun 2016

About 5.5 million tonnes of pulses were imported last fiscal, largely through private traders. The move comes as the prices of pulses have continued to soar and reached Rs 200 per kg in retail. Various central agencies and the Income Tax department have been conducting raids across the country for some time to check hoarding.

So far, 14,000 raids have been conducted and over 1.33 lakh tonnes of pulses seized in past few months, the sources said.

The rise in prices of pulses is due to demand-supply gap. As per an estimate, the demand is of 230-240 lakh tonnes whereas the supply is about 170 lakh tonnes.

With each passing year, there is an increase in demand of pulses by one million tonnes, thus making imports necessary. The possibility of black marketing and illegal trading cannot be wished away as hoarders try to exploit the situation to make profit, they said.




Views of ybrao-a-donkey which are not intended to be imposed on others



Why Political Parties cannot identify their own Party Members who engage in Hoarding and Blackmarketing?



If political parties can identify the traders who are engaged in hoarding and black-marketing of food items, both domestically produced and the imported stocks, and expel them from their parties, the Political Parties will get cleansed. Once the black-marketeers lose political patronage, it will become easy for Officials to book cases against Offending Traders.

To continue adding/ deleting/ modifying. सशेष. ఇంకా ఉంది.

Friday, February 17, 2017

906 (1 of 10 series) How Shortages (food/clothing/shelter/old-age-security) are to be met in a Truly Socialist Country, in comparison to a Capitalist Country


Triggers for writing this particular blog post: 1) A news item titled: Let’s not blow vegetable shortages “out of proportion”, says Total Produce chief in Producebusinessuk.com. Click here to go to http://www.producebusinessuk.com/purchasing/stories/2017/02/17/let-s-not-blow-vegetable-shortages-out-of-proportion-says-total-produce-chief and study it. 2) Death of Millions of People in China during 1959-62, as China's the then Ruler Mao Ze Dong neglected to become-aware and to be beware of the problems of food shortages in his reign. Here is a Wikipedia.org link: Click to go to Wikipedia.org, Mao Ze Dong Page, and the paragraph 'Great Leap Forward'.. 3) A general situation of 'Shortages of agricultural commodities in India', in respect of commodities such as a) onions b) pulses (lentils) c) sugar. Before taking up the analyses, I shall like to start with a quote from Mao Ze Dong at the aforesaid Wikipedia.org page. With the quote, I am not agreeing.

"Revolution is not a dinner party, nor an essay, nor a painting, nor a piece of embroidery; it cannot be so refined, so leisurely and gentle, so temperate, kind, courteous, restrained and magnanimous. A revolution is an insurrection, an act of violence by which one class overthrows another." — Mao, February 1927.["Mao Zedong on War and Revolution". Quotations from Mao Zedong on War and Revolution. Columbia University. Retrieved November 12, 2011.; Feigon 2002, p. 41].




Views of ybrao-a-donkey which are not intended to be imposed on others



Revolutions are to be more leisurely and slower than dinners, painting hobbies, embroidery knittings. Revolutions are bound to be refined, else they will not last long. They are bound to be not only gentler, but also to be compassionate, courteous, restrained and magnanimous. Else, they will generate repugnances and repulsions. Killing Class Enemies is not a solution because, if Class Enemies of 20th Century are totally annihilated (impossible) in the 20th Century, new Class Enemies will be born in the 21st Century. It is a continuous process.

Slower and Awareness Based Revolutions can create an environment in which Class Enemies are not born. A Healthy body can resist pathogenic bacteria. AntiBiotics can occasionally work, but worse than the AntiBiotics, the Violent Revolutions can never work, and even if they temporarily work, the results can never last long.

First of all the word 'Revolution' has become hackneyed and a jargon, owing to excess use by Maoist Groups. They believe that Revolutions can take place only through barrels of gun, whereas true revolutions can take place in any manner, including non-violent means. What is required is a 'Will' of the people, and 'compelling circumstances' to force them to opt for it.

By defining Revolutions as violent Insurrections, taking place between warring classes, Mao Ze Dong did incalculable harm to the word 'Revolution. On account of this erroneous impression of his, Communism had lost its attraction of a really useful and usable system of Economy and Economics. Today, in my view, even if China has accumulated Forex Reserves of nearly a Trillion Dollars (which are under strain for various reasons), still, China continues to be a State of Barbaric Capitalism, and it is a laughing stock worthy of rebuke, owing to its pretentious facade as a Communist Country.

First of all , there are no warring classes. There is only one Class 'Working Class'. Even BIll Gates and Warren Buffet should fall in the Working Class (also termed as Proletariat). Sadly enough, our Super Rich and, Rich believe that they belong to a Class of their Own. This is because of an incorrect self-cognition, and an inadequate self-realisation.

Mahatma GAndhi thought that Business Persons and Industrialists should act as Trustees for their Wealth. This has not worked. It will not work. It is like asking a tiger not to eat a cow, or asking a serpant not to bite a human.

Voluntary self-cognition that they belong to Working Class, can never arise in Business Persons and Industrialists. Then, the only solution is, we have to eliminate from the Society all the extraneous occupations which promote exploitation-- such as Business Persons, Industrialists. This has to come through only a democratic process. A democratic process can work correctly and effectively, only if Working Class is ENLIGHTENED AND TRULY EDUCATED. All this enlightenment and education, becomes real only if there is intellectual progressive transformation of Working Class. It is not easy, but it is possible. When Wright Brothers (or somebody else) invented aircraft, and Edison (or somebody else) invented Electric Bulb, before that people thought that it was impossible, but they made it a reality.

DEMOCRATIC REVOLUTIONS CAN LIBERATE THE WEALTHY CLASSES FROM THEIR BONDAGE TO THEIR WEALTH


The Wealthy Classes do not know that they have become prisoners and slaves to their own wealth, by becoming lucrepaths.. They even do not know that they have been incarcerated by their own greed and attachments. Consequently, they are unable to sleep fearlessly in Open, move freely on pavements with their God-given legs. The Working Class will have to free the Wealthy from their serfdom, through democratic and legal means, seizing their wealth, which is nothing but 'Removal of the Right of Private Property and Income'. Private Enterprise will have to be substituted by State Enterprise. Though State Capitalism is shunned by Capitalist Economists, there is no alternative, for the disease of LUCREPATHY.

BACK TO SHORTAGES OF AGRICULTURAL COMMODITIES IN ENGLAND


Continuous dependence on imported vegetables and fruits, might have led to degeneration of agriculture in U.K. Ever increasing populations can also contribute to conversion of agricultural lands into house sites. Excess industrialisation can knock away lands from farmers, making fenced industrial compounds ubiquitous. Agriculture is like a delicate baby. It is the most beautiful occupation, the Nature has gifted to Humans, by its bounty. By neglecting cultivation, and giving prominence to some useless glossy occupations like "Fashion Design", "Cricket", "Tennis", we have started insulting agriculture. Hence, Capitalist Countries which frequently speak about, but which always neglect "Optumum Use of Resources" should suffer, and the People who voted the Capialist Governments to Power, should suffer. Failure of Rains / Excess Rain in Spanish vegetable gardens and consequent shortages in U.K. is only an excuse for Artificial shortages indulged in by Malls and Super Markets.

To continue adding/deleting/editing. This is a 1000 page subject. सशेष. ఇంకా ఉంది.