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Minister’s appeal

Union Finance Minister P. Chidambaram has appealed to industry to reduce prices. But it is easier said than done. Recession cannot be stopped by reducing prices alone. When the cost of inputs has increased due to inflation, it may not be possible to reduce the output costs.

With regard to the real estate sector, in many States the government itself is to blame for the high costs prevailing today because over the years it has sold the lands belonging to it.

Sreedhara Ramanathan,

Hyderabad

Mr. Chidambaram’s suggestion that the real estate slash the prices of apartments and homes is welcome. The price of a house is determined mainly by the land cost. The towns expand at the expense of farm lands. They swallow village after village at an alarming rate. Land costs have gone up so much that there is a huge difference between the guideline value and the market price. We should look at promoting high rise buildings. Only then will the land cost per house come down.

M.P.S. Kumar,

Chennai

The Finance Minister’s advice comes at a time when companies are in a cost-cutting mode to counter the financial crisis. Lower-level and entry-level employees constantly fear that they may get the pink slip anytime. With elections approaching, companies are sought to be made scapegoats for the government’s failure to contain the prices of essential commodities. Mr. Chidambaram should draw a comprehensive plan to shield the industry from economic slowdown.

Aseem Thapliyal,

New Delhi

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