Deregulation of diesel price

I was surprised to read about people supporting deregulation of diesel prices. One gentleman (or woman) was saying that de- regulation is essential due to massive use of Diesel for powering private generators, telecom towers and SUVs of rich etc. According to him, de-regulation will ultimately eliminate the imponderable effect of subsidy on the economy like high inflation, tight monetary policy etc. Well, I need to explain one small thing to him and to all who believe in supporting de-regulation.

First, diesel is not just an ordinary tradeable commodity. It is absolutely critical for agricultural production and for transport of both goods and people. So do not even dare to consider diesel as an ordinary commodity considering its utilization by the vast majority of the indian population. The only thing the government would need to interpret, would be any utilization of this commodity for extravagant purposes, which would include the category mentioned above by the proponents of de-regulation. Less the disposable income on basic food materials and transportation, more would be the purchasing capacity which would ultimately thrive consumption and more money to the government.

The second thing is actually how could a country ,with a sequestered statistical calculations showing earnings of 32 rupees per day to be considered not poor and  in spite had 28% below poverty line, be considered par with the international trading rules? Are our wages the same as global wages and per capita income or standard of living equivalent to global standards. Regarding the minimum wages act, India has not officially ratified the ILO Conventions 87 and 98, which deal with the right to organization and collective bargaining. We close our eyes on such important aspects to be put in par with world standards but regarding trading a commodity that’s useful for the common man, we bring up unwarranted claims.

The simple truth is our government is OF the market, For the market and BY the market. When forced to go to the “market” for its borrowing needs, and to borrow from the “market”, it must remain creditworthy in the eyes of the “market”, for which it must pursue such policies as are approved of by the “market. This is the only Modi government agenda .