Inflation

I am a home wine maker, making new wines regularly once in 3-4 months. I started this hobby some 12 years back. Over the years, I have perfected the technique and today my people do not give entry into their homes whenever I make a family visit to South Kanara (Now Dakshina Kannada), where over 90% of my family people live without showing a bottle of my wine.

Now that is not the point I am trying to relate. When I started making wine in 1996, Bangalore Black Grapes costed Rs.12/- per Kg. at the wholesaler and Sugar Rs. 8/- a Kg., if I remember correctly. In may 2008, I made a visit to my daughters in America and just before leaving India, I made a fresh batch of red wine. I very much remember the cost of raw materials. I bought black grapes @ Rs.16/- a Kg. and sugar Rs. 21/- a Kg. On return from America in January, 2009, I went to the market to buy the raw materials. I was flabbergasted to learn the rates - grapes Rs.26/- and Sugar Rs. 28/-! That is real inflation!

The fine point I am trying to drive home is that from 1996 to March 2008, over a good 12 year period, the upword movement was approximately 30% over 1996 price and that is perhaps very normal, right? But from March 2008 to January 2009, Just about 10 months , the uprise is over 30%!! very abnormal...tse...tse...tse!

Before my America visit, the best variety of locally grown rice was selling @ Rs. 28/- and today it is Rs. 45/-; Grapes Rs.35/- and sugar Rs. 40/-!! Rise in a geometric progression! Somethinmg very alrming, isn't it? And the most disturbing thing is people of the calibre of Dr.Manmohan Singh and P.C.Chidambaram are trying to fool common man that they have take strong steps to bring down prices, which will come down soon!

Shine India Shine!!!

JAI HIND