Global crisis will hit farm sector: CPI(M)

B.V. Raghavulu  

Elect non-Congress, non-BJP government, says Raghavulu

‘Rapid drop in purchasing capacity despite fall in commodity prices’

Government draws flak for raising FDI to 49 per cent

in insurance

HYDERABAD: Criticising the Central government for downplaying the impact of recession in the US economy on India, the CPI(M) has expressed concern that the adverse effect of the crisis would start impacting the working class in the next couple of months.

The financial meltdown has already affected mining, IT and IT-enabled services, garments, real estate and other sectors where thousands lost their jobs and the same will be felt on farming sector by next kharif.

The slowdown resulted in fall of prices of commodities like wheat, but the purchasing capacity of people is declining more rapidly, CPI(M) State secretary B.V. Raghavulu said.

He was participating in a convention on ‘global financial crisis – impact on insurance industry in India,’ organised jointly by the All-India Insurance Employees Association and South Central Zone Insurance Employees Federation here on Saturday.

Mr. Raghavulu wanted Prime Minister Manmohan Singh, former Finance Minister P. Chidambaram and Planning Commission deputy Chairman Montek Singh Ahluwalia to be punished for their efforts to integrate Indian economy with that of the US. He appealed to the employees to “think politically” and elect a non-Congress, non-BJP alternative to curtail such moves permanently.

Telugu Desam Member of Parliament M.V. Mysoora Reddy, TRS general secretary S. Madhusudana Chari and CPI State secretariat member V. Ramnarsimha Rao criticised the UPA government for trying to hand over the control of the Life Insurance Corporation of India and other general insurance companies to private sector by enhancing the foreign direct investment (FDI) to 49 per cent from the existing 26 per cent.

AIIEA president Amanullah Khan expressed concern over the efforts to dilute LIC and other corporations that had assets of over Rs. 8 lakh crore and were making significant contribution to infrastructure development.