Summary
In this two-page statement dated Bombay, August 6, 1964, M. R. Masani attacks Union Commerce Minister Nanda’s attempt to raid wholesale traders’ stocks as a political stunt that failed to uncover hoarding. He attributes food shortages and high prices to the Congress Government’s planning priorities since the Second Plan: heavy industry and capital-intensive projects were placed ahead of consumer goods and agriculture. He argues that neglected food production, slow-yielding investments, deficit finance, and heavy indirect taxation have together produced inflation and economic strain.
Masani cites a Reserve Bank statement that Treasury Bills outstanding had increased by more than Rs. 149 crores during the six weeks ending July 10, 1964, most of it representing deficit finance. He also presents vouchers to allege profiteering by state-linked cooperative societies, contrasting their purchase and sale prices for jowar and wheat. For immediate relief, he proposes releasing buffer stocks through fair-price shops and the trade, abolishing zonal barriers, decontrol, and stopping exports of edible articles until conditions improve.
Key points
- Masani describes the Delhi stock-raiding operation as a failed political stunt and criticises the use of traders and peasants as scapegoats.
- He blames food shortages and high prices on planning priorities that put heavy industry before consumer goods and agriculture.
- The statement links neglected food production, low-yielding industrial investment, deficit finance, and indirect taxation to inflation.
- Masani reports that Treasury Bills outstanding rose by over Rs. 149 crores in the six weeks ending July 10, 1964.
- He uses price vouchers to allege profiteering by the Maharashtra State Co-operative Marketing Society Limited and the Bombay Workers Central Consumer Cooperative Society Limited.
- His proposed remedies are buffer-stock release through fair-price channels, abolition of zonal barriers, decontrol, and suspension of edible-article exports.
Metadata and summary are AI-extracted from the source PDF and reviewed for editorial accuracy. The original work is available via the Read PDF tab above (where present); paragraph-level citation inside the PDF is deferred to a future engagement.
