INFLATION NEWS AS ON 15th SEPTEMBER 2012

Indian Inflation is running at only 7% and Trending Downwards??? Don't make me Laugh. Over the Last few months or so the following Announcements have come in which clearly show India is still reeling from Double-Digit Inflation rates. 1) The Country's largest Producer of Milk-Amul; Increased Prices by 7% from 1st April 2012.According to Amuls Own Figures; The Price of 1 Litre Full Cream Milk have doubled from 2006 to Today [From Rs 19/Litre in 2006 to Rs 40/Litre today].Also from Amuls own Figures, They have raised Milk Prices by 15% over the last a year alone!!! If this isnt Double Digit Inflation every year for Five Years Straight; I dont know what is. In Mumbai, Milk Prices have already increased by 20% in the last one year. Milk Prices have been increased by 6% in New Delhi from 16th April 2012. In Pune, Parag Milk Foods (Producer of Gowardhan Brand of Milk, Curd, Cheese and Ghee) has raised Prices of its products between 5%-7% from 15th July 2012 onwards according to Devendra Shah-Chairman of Parag Milk Foods. In Punjab, Haryana and Himachal Pradesh-Milkfed(the State Cooperative ) has raised prices by Rs 1/Litre for Verka Brand of Milk from 8th August onwards.[3.7% Increase].This comes after another Hike of Rs 1/Litre in September 2011[3.4% Increase]. In Delhi, Mother Dairy (supplies 27% of All Milk consumed in Delhi)plans to raise Milk Prices by upto 10% from 15th September onwards on account of Higher Fodder & other Input costs(according to Managing Director- S.Nagarajan). They last increased prices in September 2011. According to Hatsun Agro CMD-Chandramogan-There exists the possibility of Further Hikes in 2012 as Fodder costs for Cattle have gone up dramatically because of Deficient Rainfall in India this year. Has your income doubled in the last six years???? 2) Railway Fares-AC 1 fares have been increased by 30 paise/Km and AC 2-Tier Fares have been increased by 15 paise/km; earlier in the Railway budget in March. This along with the move to bring First Class and AC fares under the Service Tax net(presented in the Latest Budget-Additional 4% Burden),means it has actually become much-much more expensive to travel especially for Long-Distance Travelers. The 4% increase in AC and First Class Fares becomes operational from 1st Oct 2012.In Addition, Railway Platform Ticket Prices have also been raised by 67%. 3) Railway Freight Rates have been increased by 10%-25% on Various Commodities from 5th March 2012 onwards. In addition, the 4% Exemption on Food grains and Fertilizers has been withdrawn. Railways have Hiked Parcel and Luggage Tariff Rates by about 20%-25% on all Goods and Baggage from 1st June 2012. DTDC( Private Courier Service) has raised Tariffs for Inner City Couriers by 25% from 14th July 2012[From Rs 60 to Rs 75]. In response to the Diesel Price hike (made on 14th September 2012);the All India Motor Transport Congress[AIMTC]; which controls the Bulk of Road Transport Business In India has hiked Freight Rates all over India by 15% from 14 th September 2012 onwards. According to them-The Cost of Manpower has gone up by 20% and Cost of Tyres has gone up by 49% and cost of Tolls has escalated by 35% in last Two years alone!!!

4) Indias largest FMCG Manufacturer-Hindustan Unilever (A Division of the Global Multinational-Unilever)- Increased Prices of Soaps, Detergents, Soups and Toothpaste by Between 8%-10 % in April 2012( By first reducing the quantity sold and then Increasing Prices).Thanks to the Sinking Rupee, Further Price Hikes (close to 20%)are very likely on the way for all FMCG Companies. Nestle India-Maker of KitKat Chocolates, Cerelac Infant Cereal and Maggi Noodles has raised Prices by between 10%25% over the last Six months according to Kotak Institutional Securities(as of 14th June 2012). Over the last Two Years Cerelac and Lactogen Prices have gone up by 39% and 46% respectively [Nestle has a 90% share of the Infant Nutrition Category in India]. According to India Buscuit Manufacturers Association[IBMA];President BP Agarwal(as of August 27th)-The Prices of Wheat(up 30%),Sugar(up 22%),Vegetables(up 17%),Milk(up 16%) and Packaging(up 10%) in the last One Year alone!!! From 1st November 2012 onwards, The Government has ordered all FMCG companies to sell their Products in Standard Pack Sizes. This However will lead to more Consumer Inflation as Prices can only move up in intervals of Re 1 according to Kotak Institutional Securities and Edelweiss Capital. Baby food, weaning food, biscuits, bread, butter, coffee, tea, cereals, pulses, milk powder, salt, edible oils, rice, wheat flour, aerated soft drink, drinking water, cement and paints are among other products that manufacturers are required to pack and sell in standard sizes from 1st November onwards. The Sticker Price Shock is going to be massive! Do you still think Inflation is at 7%??? 5)Electricity Rates in Tamil Nadu(by 37%) ,Andhra Pradesh(by 27%) , Odisha(by 57%) and Madhya Pradesh(by 7%) have been raised spectacularly from 1st April 2012. In Andhra Pradesh the Ferrous Alloy Manufacturers (30% of Indias Production) have seen Tariff Hikes of 50%; consequently they have cut Production by 40% as the Price Rise makes Production unviable. You will see similar snowballing Industrial Production cuts all over India because of such Rapid Price rises. The latest IIP numbers (Which clearly show Industrial Growth has fallen sharply) is just the beginning. Thanks primarily to sharp rises in Electricity Tariffs & Wages; Industrial Production (primarily for Exports) is starting to get economically unviable in India. DERC hiked Electricity Tariffs by 5% from 1st February 2012 following which DERC has approved a Fuel Surcharge on all Electricity Bills from 1st May 2012.The Fuel Surcharge will vary between 4% (for Tata Power Consumers) and 7%( for BSES consumers) of the Entire Electricity Bill. This comes after the 22% Hike Delhiites had to bear last year (August 2011). DERC has approved a 28.2% Hike in Electricity Tariffs (for Residential consumers) and 24.9% for commercial Users from 1st July 2012!!!They also plan to introduce a new System called Time of Day Metering from 1 stJan2013; whereby charges for anyone using Power during Peak Hours [6PM to 11PM], will be much higher than normal Tariffs. KERC in Karnataka increased Electricity Tariffs for all users from 1st May 2012 onwards by an Average of 3%. This follows a hike of 7% made previously in October 2011.In the past two years, Karnataka has seen Four Price Hikes of Electricity Tarrifs.However, they are not yet done-Another Fresh hike is coming to account for an Increase in Fuel Costs. From 1st June 2012 onwards In Mumbai, for all Residents who live between Colaba/Cuffe Parade and Sion/Mahim Electricity Prices go by an Average of 27% after Approval by MERC. CESC raises Electricity Prices for Kolkata by 2.5% from 1 st June 2012[Total increase amounts to 15 paise/Unit]. Punjab raises Electricity Prices by 12.10% from 16 th July 2012 for consumers. The Hike will be retrospective to 1st April. In Addition, a 10 Paise/Kwh Tariff has been levied on Continuous Processing Industry (Spinning, Textiles and Casting).Also a 4 paise /Unit Fuel Surcharge for Metered Consumers and Rs 2/BHP for Agriculture Pumpset consumers is

also being levied. Railway traction will also see a Hike of 2.93%. In addition, there will also be an additional Electricity Duty of 13% and 10 paise/Kwh in Octroi Charges which are independent of the current Tariff Increase. Major Industries in Punjab are already opposing this Hike. According to K.K.Garg[President of All India Furnace Association];the resultant Hike which will be passed onto Steel Product Consumers from 17th July onwards will be about Rs 500/Tonne!!!Textile Major-SEL Manufacturing Executive Director-VK Goyal says this Hike makes Textile manufacturing in Punjab uncompetitive and they are seriously considering shifting all his existing production out of the State to Madhya Pradesh (where Electricity and Land costs are 40% lower)!!! Kerala[SERC] has increased Electricity Prices by 30.2% on Average for all Consumers [Domestic and Industrial] from 29th July 2012 onwards!!! For anyone consuming more than 201 Units/month; the increase in Tariff is actually 40%!!! Also, Kerala has also increased the Tariff for Agricultural Consumers by 39%! In addition, the SERC has introduced Fixed Charges of Rs 20/month for Single Phase Users and Rs 60/month for Three Phase Users. Power Tariff for Extra High Tension Consumers goes up by 52%.The SERC and Government also plans to levy an extra One Paisa charge/Unit consumed as Energy Efficiency Cess sometime in the coming future. Additionally consumers using more than 500 Units /month will have to pay much Higher rates during Peak Hours of 6PM-10PM [TOD]from 1st Jan 2013. Surprisingly, even after such a massive Hike the State Board in Kerala is still losing 5.5% [Rs 0.24] on every Unit it sells to a consumer; which means further Hikes are coming!!! Maharashtra increased Electricity Prices by 16.48% from 1st August 2012 onwards. Only Agricultural consumers are spared the Hike. UP looks set to raise Electricity Rates by 33% from 1 st September 2012. More Increases are coming-Power Companies which run on Imported Fuel will be permitted to increase Unit costs by upto Rs 1/unit to offset the increases in Fuel Prices they are currently facing. As of 12th July-The Power Ministry has permitted Power Project Developers to pass on the Entire Cost of Power Generation onto Consumers. The Tariff Based System (which was previously levelized for 25 years) has now been revised to implement Price Increases every year!!! The Power Ministry is now in favor of Utilities increasing Prices every Six months to permit Utilities to recover their losses. According to Jayant Deo(as of 4th July 2012)-CEO of India Energy Exchange(IEX); Power rates have risen over Rs 7/Unit in most parts of the country and have risen as High as Rs 12/Unit in South India. As of 29th July, Power rates at IEX; Average Prices have Tripled since 1 st June(Rs 1.8/unit to Rs 6/unit).In South India, the numbers are even worse The Average Rates have hit Rs 8/Unit. During Peak hours the rates have reached as High as Rs 19/Unit in South India.Also from,IEX-The Average Rate of Power today is (as of 30th July) is Rs 6.5/Unit as against Rs 23/Unit last year. Inspite of these Sales through the exchange have gone up by 17% YoY. These Increases will eventually have to passed onto all Consumers in the Form of even Higher Hikes!!! The Indian Government has decided to Levy a 21% Import Duty on All Power Equipment Imports where previously Import Duty was Zero from 21st July onwards. The move is being done primarily to benefit Indian Manufacturers like BHEL,L&T,BGR and Alstom India. The Association of Power Producers(The Private Sector Power players- like Reliance Power, Adani Power,etc ) Director General Ashok Khurana claims this will lead to a commensurate rise in Power Production Costs which will be ultimately passed on to Consumers in the form of Higher Tariffs. Coal India raised Prices of all Grades of Coal supplied from Western Coalfields by 7% and Coal supplied from Eastern Coalfields [Rajmahal] by 25% from 21st June onwards. This coal is to be supplied to Maharashtra. Tata Powers Mundra UMPP and Adani Powers Mundra Power projects which both run on Imported Coal are losing Money [Over Rs 0.75/Unit primarily because of the Crash in the Value of the Rupee].Consequently, they are pushing the

CERC as well as State Governments in Gujarat, Madhya Pradesh, Maharastra,Punjab and Haryana to increase prices (which will have to passed onto Consumers in those States in the form of much Higher Tariffs). The Govt is also considering a Ban on Used Capital Goods equipment ostensibly to protect the Environment but primarily to protect Indian Manufacturers of Capital Goods Equipment. Problem is since India is neither self-Sufficient in Producing all the Machines it needs and the Quality need not be of the Highest Standard; The Prices which manufacturers will have to pay for this New Equipment; will ultimately be passed on to all consumers in the form of Higher costs. 6) Gujarat Increased CNG Prices by 5% from 1st April 2012. GSPC has increased Prices of CNG(by 11%) and Piped Natural Gas (by 24%) from 11 th April Onwards. In fact, between 1st November 2011 and Today-GSPC has increased CNG Prices by 25%. The price of Commercial Connections of LPG for a 18kg Bottle were Doubled from Rs 800 to Rs 1800/Bottle in March12. HPCL increased Prices of CNG by 7.4% in Gujarat(as of 28 th August 2012).This comes after a Hike of 5.6% on 17th May . This is how prices of CNG have changed in Gujarat.Consequently one can expect Rickshaw,Taxi and Bus Fares to also rise. 1st Jan-30th March(Rs 47.83/kg),1st April(Rs 50.22/kg),17th May (Rs 53/kg) and 28th August(Rs 56.90/kg). New Delhi Government has increased CNG Prices by Rs 2.90/kg in New Delhi and Rs 3.30/kg in adjoining NCR Areas from 7th July 2012.New Prices are Rs 38.35/kg in New Delhi and Rs 43.10/kg in adjoining NCR Areas.[Effective 10% Hike]! The reasons given for the Hike are Declining Rupee (which causes Imported Natural gas to become more expensive), Hike in Minimum Wages authorized by Delhi Government and 23% Hike In Electricity Prices in 1 st week of July. 7) Maharashtra has put in place a New 5% Tax on LPG(Cooking Gas) from 1st April 2012. 8) Vegetable Prices all across India have doubled in the last three months alone, According to ET figures, the cost of Basic Vegetables have risen by 35-50% in Delhi over the course of the last Month only!!! According to Latest Government Inflation Figures, Vegetable Prices have risen by 61%(From Official govt Figures out on 14th May 2012) !!! A Basic Vegetable like Potato has seen its Price TRIPLE over the last Three months!!! According to Latest Government Inflation Figures for July(out on 14th August 2012), Prices of potatoes rose by 73 %, rice ( 10.12%), cereals ( 8.29 %) and pulses ( 28.26 %). Eggs(16%), meat(16%), fish prices(16%) , milk prices( 8.01 %)and for vegetables it was 24.11 % on an annual basis. Among the non-food articles, inflation in fibres was high at 5.89 %, oil seeds at 25.22 % and minerals at 8.43% [YoY]. The rate of price rise in the manufactured products [cotton textiles, paper and paper products, cement and lime] was 5.58 % in July, as against 5 % in June. According to Mr.Patit Paban De-Member of West Bengal Cold Storage Association-Potato Prices have risen by 35% in last Two months (as of 21st June 2012)because of less Production in West Bengal and UP(during Rabi Season) and in Karnataka(due to absence of Rain).And they are expecting further rises going ahead. Compared to the last Year, Wholesale and Retail Prices of Potatoes have doubled!!! According to the NHRDF[National Horticulture Research and Development Forum];Tomatoes have seen a price of 33% in the last Three months(as of 14th June 2012)!!! As of 4th August, Retail Tomato prices have risen from Rs 40/kg to Rs 50/kg(25% Increase in one Month alone!!!).Onions have seen a rise of an incredible 67% in one month!!! From Rs 15/kg to Rs 25/kg.Because of Poor Monsoon, The NHRDF expects further rise in Prices of Tomatoes,Onions,Garlic and Potatoes to come in next two months.

According to the latest Official Govt Figures (out on June 18 th 2012)-Food Inflation has Accelerated to 10.66% in May from 10.18% in April. While CPI remains at 10.36%. According to Geojit Comtrade as of 25th May 2012-Cardamom Prices have risen by 20% over the Last Month alone!!!Other Spices are also expected to go by atleast 5% from 1st June 2012(according to Delhi Traders Association). According to Mr.Sundeep Mehta, Member of National Egg Coordination Committee; the Price of Eggs have increased by 50% YoY(as on 28th June 2012).Chicken and other Poultry costs have also seen rises. The primary reason being rise in Prices of Chicken Feed especially Soya(UP 70%) and Maize(up 20%).According to D.Sudhakar-President of Andhra Pradesh Poultry Federation-The rise in MSPs on all Foodgrains by Delhi Govt(see Point 17 Below);will mean Production costs will rise by another 30% over the next year or so. According to Vista Processed Foods CEO-Bhupinder Singh; the price of Chicken in India has risen by over 45% YoY(as of 21st August 2012). The Price of Hilsa Fish in Kolkata and Mumbai has now risen to Rs 1500/Kg[50%-60% more than Last year].According to Central Inland Fisheries Institute the Rise is because of poor rainfall and Industrial pollution(In Narmada and Hooghly rivers) which has reduced Catch of the Fish by 67%[As of 8 th August 2012]. According to Zee News(as of 3rd July 2012)-Vegetable Prices in New Delhi have DOUBLED in the last six months while Fruit Prices have increased by 50%!!!Again from Zee News and ABP News,Prices of Vegetables in New Delhi (particularly Tomatoes and Capsicum) have DOUBLED in the space of a month or so[As of 15 th July 2012];primarily because of Poor Rainfall in Solan[Himachal Pradesh].In Guwahati,Assam-Prices of all Vegetables have risen by between 100%-200%[Yes 200% that is no typo];in the last three months because of Floods in Assam. According to Jayant Maglink-President of Religaire Securities; Food Commodity Prices on NCDEX have risen by as much as 19% since 1st July alone!!! The reasons given are Declining Rupee, Poor Monsoon and Demand from China. The hikes are as follows-Barley(13%),Jeera(12%),Cotton Seed Oil(13%),Wheat(12%),Coriander(10%) ,Soyabean(10%),Castor Oil(10%) and Turmeric(18%).Castor Oil &Soyabean are now trading at all-time Highs!!! And more Hikes are coming. Because of Continuing poor Weather in India, coupled with Droughts in USA(which have pushed Corn and Soyabean prices to all-time Highs),Rainfall in Brazil(affected Sugar production) ,Droughts in Kazakhstan and(Wheat exports cut) and Australia (Wheat Exports hit because of Excessive Rainfall) means continued bad news for Food Inflation figures in India going ahead. The USDA has declared One-Third of America as Drought-Hit!!! 9) Vegetable Oil Prices have increased by 10% In line with International Prices of Palm Oil. And we are not yet doneAccording to the Solvent Extractors Association of India-Vegetable Oil Imports have risen by 95% YoY in April 2012 and look set for another 30% rise this Year. Further pressuring our Limited Foreign Currency Reserves (& putting Pressure on the Indian Rupee). And more Price Rises are coming; According to Major Edible Oil Importers (Adani Wilmar, Cargill India & AP Solvex)-The Crash in the Value of the Indian Rupee(& Production Cuts in South America) has meant that they are looking at a Hike of between 3 %-5% in Vegetable Oil Prices from 1st June onwards. According to Sunvin Groups (Vegetable Oil consultancy) CEO -Sandeep Bajoria;the Dollar Costs of Imported Soyabean Oil and Palm Oil have gone by 9% and 11%respectively in last one week[AS of 7th July];However Importers are still waiting to pass on the Price Hike to consumers. According to ET as [of 7th July]-Groundnut Mill Delivery Oil ,Mustard Expeller Oil, Mustard Pakki, Kachi Gani Oil, Sesame,Cottonseed Mill Delivery(Haryana),Soyabean Refined Mill Delivery(Indore),Soyabean Degum(Kandla),Crude Palm Oil(Ex-Kandla),Palmolein(rbd),Palmolein(Kandla),Coconut Oil,Linseed Oil and Castor Oil All so Price increases of

1%,2%,1%,1%,1%,1%,1%,2%,1.5%,2%,1%,2%,2% and 2.4% respectively over the last one week alone [at the Wholesale Vegetable OilSeeds and Oils Market in New Delhi]!!! According to Private Importers, Prices of all Cooking Oils have risen by Rs 5-10/kg in June!!! Palm Oil Prices have risen by 0.31% in August 2012. According to a Zee News report on 11th September,The price of Sarson Ka Tail[Cooking oil] have increased by 20% in two months alone!!! 10) With the Total removal of All Restrictions on Sugar Exports by the Agricultural Ministry in the last week of April, Sugar Prices have risen by between Rs 1/kg-Rs 3/Kg all over India. With more price rises to follow as Domestic Prices rise to match upto International Levels. Prices have already risen very, very sharply in International Markets in June-July primarily because of Bad weather in Brazil & less rainfall in India. Punjab Government has imposed a Fresh 5.5% VAT on Sugar from 20 th July onwards. This Fresh Hike will be passed onto consumers. In response to this Hike, Sugar Wholesalers have gone on a indefinite strike from 21st July onwards demanding a partial roll-back (to 1%-2%) of this VAT. Which means Sugar Prices [Which have already risen by between Rs 3-5/kg in Punjab since 1st July]; have risen by upto 20% as of 4th August 2012!!!However, Most traders are expecting further rises (as Stocks are rapidly declining) on the back of rising Demand for Festival Season. Retail Prices have risen from Rs 36/kg to Rs 42/kg and Wholesale Prices have risen from 3400/Quintal to 3800/Quintal!! 11) Prices of Basic Dals have risen by 12% over the last Two months alone!!!(This is again from the latest Official Govt Inflation figures) out on 14th May 2012.And More Price Rises are coming-According to Deloitte Haskins& Sells; Prices of all Dals will rise further by between 5%-20% over the Next Two months to account for the Weakening Rupee and Production cuts in Maharashtra and Karnataka. According to ET-Prices of Dals have gone up at the Chennai Wholesale Market (as on 7 th July). Tur Dal,Urad Dal, Moong Dal,Gram Dal and Sugar prices have risen by 1.41%,1.83%,4.9% and 3.65% respectively (In one week alone!!!) According to Private Food Importers, Consumers are increasingly substituting Urad and Yellow Peas for Chana Dal and Tur Dal(because they are much-much cheaper). According to the Religare Monsoon Report out on July 19 th,Poor Rains have pushed Prices of Cotton by 25%(since 1 st June) and Prices of Pulses (Urad,Tur,Moong and chana) have also risen by 20%.They also expect Cardamom prices to rise by 20% by 1st September 2012.The report also states that Prices of Jeera, Turmeric, Pepper and Chilli may rise further as sowing gets delayed for the next crop because of poor rains. According to a special Report placed in Parliament [As on 13 th August]-Retail Prices of Gram Dal,Tur Dal,Masoor Dal and Sugar have risen by 27%,6%,15.1% and 12% respectively since 1st May 2012 onwards!!!Prices of Tomatoes and Edible Oil have also registered sharp rises. According to a Special Report published by Zee News on 10 th September, Prices of Arhar Dal,Chana Dal and Rajma have all risen by between 30%-50% since 1st August !!! Government will also be giving more Diesel and Seed Subsidy to protect Farmers from Drought. Since most of the Diesel will be re-directed to Industries, Automobiles and running Commercial establishments; Indias Fuel Subsidy will continue to balloon further out of control!!! There is scope for further rises in Soyabean,Guar and Cotton primarily because their main Growers[North-West India] are seeing extremely deficient rainfall this year(36% Below normal).In addition, Higher Soybean and Corn Prices in International Markets because of Droughts in US and Southern Europe means that Indian Imports of Soyabean Oil[Rising

by over 20% in last one year];look set to get more expensive.Also,Lower Pulses Production In India means that we need to import more from Myanmar and Australia further pressuring the Indian Rupee. According to Ashok Gulati[Chairman of CACP]-India spent Rs 55,000 Crores on importing Pulses and Oilseeds last year. With this years drought (&Crash in the Rupee) these numbers will be worse. This year Foodgrains Output in India is expected to be down by 15 million Tons YoY. Also, the Government plans to re-introduce Pulses subsidy through the PDS system(as of 28th July);by adding a Subsidy of Rs 20/kg to Pulses(double earlier amount) purchased by BPL families; which means Indias Budget Deficit will go up even further. 12) Tea Prices have risen by an Average of Rs 50/Kg over the course of last one year according to McLeod Russel. We are not yet done-According to ICICI Research-Tea Prices will rise by a further Rs 12-14/kg because of Declining Production in India (Down 13% YoY) and overseas in Kenya. Tea Production in Assam has been Hit in June because of Disruption of Gas Supplied by Assam Gas Company. According to latest Research Report from ET(as of 4 th July 2012)-Tea Production in India was down 17% in April 2012 because of Bad Weather compared to April 2011. As of 20th July-Tea Production in India(excluding Assam) was down 12% in May 2012,while in Kenya(14% down) and Sri Lanka also have seen drastic falls in Production. According to Auctioneer J.Thomas& Co. as of 12th July 2012-Coffee Prices have risen by Rs 14/kg(Arabica Plantation A Grade) and Rs 12/kg(Arabica Cherry PB and AB Grades) in last one Year!!! 13)Unseasonal Rains in April have destroyed Standing Crops in Punjab(Wheat),Andhra Pradesh(Mangoes) and Himachal Pradesh(Apples).In Khanna, Punjab some stored Grain at Asias Largest Grain Mandi- has also been destroyed primarily because of inadequate storage facilities at Government Warehouses. Inadequate Storage Facilities in Madhya Pradesh have left Tons of Wheat to rot and Farmers to commit Suicide because the Govt has no Place to store Grain. Farmers are now expecting compensation from Bankrupt Governments. According to Food Minister as of 21st June 2012-KV Thomas-6.6 Million Tons of Wheat(Market Value Rs 1100 Crores) is being kept at FCI[Food Corporation of India] Godowns in Punjab,Haryana,Rajhastan and Madhya Pradesh in an Unscientific Way. There is a Strong possibility that all of this Grain will be unfit for Human Consumption by the end of the Current Monsoon(September 2012).Against a Storage Capacity of 64 Million Foodgrains the FCI currently stores 82.3 Million Foodgrains.Of the 50 million Tons of Wheat Procured by the Govt. 27 Million Tons is Kept in the Open!!! Because of Hikes in MSP and Bonuses announced by some States (see Point 16 below);as against an Annual Demand for 63 million Tons of Foodgrains by the PDS;the FCI will be procuring 84 million Tons(A Significant Chunk of which will be wasted because of inadequate Storage Facilities and rendered unfit for Human Consumption). According to Rural Development Minister-Jairam Ramesh(as of 6th July); Toilets built in Rural Areas especially in States like Punjab,Haryana,Madhya Pradesh,UP,etc are being used to store Extra Grain .It is put in there and then locked!!! Is it any wonder that a Major European Grains Trader (Source Reuters) says that "There is great doubt in the market about whether the Indian deal will happen. They are never going to get the phyto -sanitary standards worked out; The Indian wheat cannot reach the standards the Iranians traditionally demand." This was in response to Wheat for Oil deal which was to be worked out between Iran and India (as of 5 th July). Indian Foodgrains are good enough only for Indians. Nobody else will use such poor quality Grains!!! This is getting really, really brilliant! First Taxpayers Subsidize Diesel, Electricity, Fertilizers and (most importantly) Water for Agricultural Use [Which the country and especially North-West and Central Parts can very clearly do without] and

then we subsidize the Building of Toilets which are used to House Foodgrains and watch significant chunks of Grain either get Stolen, Diverted to the black market or get spoilt because of Inadequate storage facilities!!! The latest Incidents of Food Wastage comes from the Buland Shahar, FCI Godown in UP (off NH-24); where Thousands of Tons of Foodgrains got destroyed because of the indifference of FCI Official to poor Storage of Grains Inspite of heavy rains [As on 5th-7th July], in the FCI Godown in Gadchiroli, Maharastra [August 1st-10th]; where over 200,000 Tons of Rice (worth Rs 250 Crores) has gone Waste!!! In Vadodara Railway Station, Gujarat about 1200 Tons of Wheat was left to rot in the open [As of 12th August](worth about Rs 1.5 Crores).Also [Again on 12th August];FCI Officials tried to smuggle BPL Wheat(from Haryana) worth Rs 5 Crores to Bangladesh [From Kolkata Port]!!!According to The Authorities they have already sold Grains worth Crores of Rupees to Bangladesh!!! Once again, The Blame Game amongst various Government officials continues. Inspite of the tremendous resources poured into Indian Agriculture so as to provide us Indians with a Secure Food Supply-Our Esteemed Food Minister-KV Thomas still says there is nothing the Government can do about Food Inflation!!![As of 4th July 2012] And the saddest part of this whole affair is that the Subsidies barely reach the people who most need it -The millions of Rural Agriculture Small-landowners. Once again, Taxpayers lose every single way you look at it. 14) Farmers in Punjab and UP are agitating for an Increase of atleast 12% in MSP (Minimum Support Prices) for Wheat. Farmers in Maharashtra (Onions, Milk) and Haryana (Milk) are also agitating for Increase in MSPs. In fact, the Milk Farmers Union is threatening Major Agitations (including Shutting down of Roads) nationally from 25th May onwards. On 13th June ,The Commission For Agriculture Costs and Prices[CACP] has recommended a steep rise of MSP paid for Crops like Rice,Jowar,Oil Seeds and pulses between 15%-53%;Consequently the Food Subsidy Bill will rise by Rs 15,000 Crores in this financial Year. This is again Money which the Government does not have. Also, since the Indian Govt currently has inadequate Storage for Grain ;significant chunks of Public Money(which is used to Buy this Grain) will then be Destroyed because of poor Storage Facilities or be stolen by Corrupt Government Officials who run this Storehouses just like what happened recently in Allahabad-UP or in Kanakpura-Rajhasthan. The Final Increase in MSP announced on 15th June 2012 is as followsBajra(20%),Maize(20%),Rice(16%),Jowar(53%),Ragi(43%),Soyabean(34%),Niger Seed(21%), Cotton(29%), Groundnut(37%),Sunflower(32%),Sesanum(24%) and Urad(34%). Once again, Food Inflation will go through the roof as MSP Prices are linked directly to Market Prices for Grain. Again the Taxpayer loses every Single way you look at it. Also, the CACP Chairman-Ashok Gulati would prefer to raise the Price of Rice sold through Ration Shops today (in tandem with increase in MSPs). 15) According to the Milk Farmers Union-The Price of A Milk Producing Buffalo has TRIPLED in the last Three years alone. Also,Prices of Diesel Motors and Generators(needed to irrigate Fields) has risen by 15% YoY!!! According to The Progressive Dairy farmers Association(PDFA) in Punjab & Haryana Cattle Feed Fodder costs have gone up by 35% in a month because of the Drought(as of 8th August).Prices of Deoiled Rice Bran has risen from Rs 700 to

Rs 1050/quintal, Prices of Mustard Cake have risen from Rs 1500 to Rs 2100/Quintal and Prices of Deoiled Mustard Cake and Soybean have also risen by 40% in a month!!! In Drought Stricken Maharastra; Fodder Prices have Doubled in the space of two months(as of 12 th August). 16) Mumbai-Taxi Fares go up by 7% from 1st April 2012 but Taxi Drivers are agitating for a Greater Increase. Most probably the Final Base Fare Increase will be atleast 19%.Auto Rickshaw Fares have gone up 9.1% from April 20th onwards[Rs 1 base Fare Hike].However, some constituents are still not happy and continue to Agitate for a Fare increase (Strike on 16th April 2012). Most probably the Final Fare Hike will be atleast 15%.According to Mumbai Grahak Panchayat Auto fares in Mumbai have already risen by 25% in the last six months. 17) From 1st April 2012 onwards, KSRTC has increased Volvo Bus fares on the Manipal-Mangalore route and Manipal-Udipi Route by 15% and 25% respectively. From 27th April 2012 onwards, Mumbais BEST has increased Bus Fares by 30%-40%.The Fares increase from Rs 1 to Rs 6 depending on Distance Travelled. In addition AC Bus Passes have been hiked by Rs 500 per month (25%-35% Increase depending on Type of Bus Pass). This comes after the last Fare hike which came in September 2010. From September 2010 onwards, the Base Prices of Bus Tickets have risen by 67%, Monthly Bus pass prices have raised by 133% and Quarterly Bus Pass Prices have risen by 103%!!! The Delhi Metro (DMRC) plans to Hike Metro Fares after the Steep Hike in Electricity Tariffs(Tariffs have risen by over 60% YoY);The Hike will come in August-September 2012. In response to Double Digit raises in Both Electricity and CNG Prices in Delhi in July; CNG run Rickshaws, Taxis as well as Buses will also see a proportionate rise very soon. 18)The Countrys largest Manufacturer of Cigarettes ITC ,has announced a Price Increase of between 6% and 16% on various Brands from 9th April onwards(Average Hike-12%). As of 30th June 2012, The New SP Government in UP has increased Excise Duties on Tobacco Products from 12.5% to 50% and on Alcohol by 10%.Rajhastan also increased Excise Duties on Cigarettes to 50% from April 2012.According to an Analyst Firm- Espirito Santo Securities, there are more Tax hikes coming in Maharastra,West Bengal, Tamil Nadu and Andhra Pradesh. Following these Tax Hikes, Analyst Firms like Sharekhan,Ambit Capital and HDFC Securities expect ITC to raise Prices by another 1%-5% soon(1st September 2012). 19) Mumbai-The BMC proposes to TRIPLE the Fire Service Charges on High Rise Buildings in Mumbai to pay for a Rs 25 Crore Deficit which the Fire Department currently faces. 20) Key Inputs that go into Construction-Steel, Aluminum and Cement have seen Prices Rise by close to 15% in the last Month or so. In the latest Case, from 25th May onwards; The Govt owned NALCO (Indias No.3 Aluminum Maker) has raised Prices by between 3%-5% for the Domestic Market. From 1st April 2012 onwards, Indian Government increased Import Duty on Flat Steel Products [Used in Autos and Construction]from 5% to 7.5% to protect Domestic Steel Manufacturers. Steel Prices are expected to rise by 7.2% this Financial year according to CMIE [Centre for Monitoring Indian E conomy] (as of 29th July),prices will start rising from October. The main reasons are firmness of Domestic Iron Prices, Weakening Rupee and Healthy Demand from Users. Steel manufacturers in particular are very upset about NMDC(Domestic Iron Ore Miner);constantly increasing prices every Quarter Inspite of Softening of Prices on International Markets. There is a possibility of further rises in July-Sept Quarter too. This trend has particular affected RINL, Welspun,JSW and Essar Who dont have their own mines.; this is after Prices have already risen by 25%-35% over the Last Two Years alone!!!

As of 21st August, NMDC has raised prices of Iron Ore by 8%(for Fine Ore-cost is now Rs 3100/Ton) and by 13% (for Lumps cost is now Rs 6100/Ton) for July-September Quarter. Since Indian Industry uses mainly Lumps; the Price Hike for Steel (and construction) will be of order of 13% or so. This hike comes after a rise of 8%-10% seen in the previous Quarter as well!!! According to Jerry Rao of Value& Budget Housing Corporation [A Developer focused on Low cost Housing]cost of all Inputs has gone up by 70% over the last few years(as of 21st June 2012). According to Lalit Kumar Jain-National President of CREDAI-All Input costs that go into Construction have gone up considerably. Labor Costs are up 60%, Cement and Steel Prices have risen by 30%, Government Taxes and other Approvals each are up in last one year. He also believes that at the first opportunity Property Prices will have to rise by 10-20% to compensate them for rising Input Costs. 21) Ghaziabad Administration raised Circle Rates between 10%-40% from 1st June 2012 onwards to cover the Gap between Circle Price and Market Value. Property Builders all over India are proposing (and in some cases even implemented)-Inflation clauses into their Selling Contracts. These clauses guarantee that if from the time a Flat is booked to when a Flat is handed over to the Buyer, if Cost Inflation exceeds 10%; the costs will be borne by the Buyer. As if it isnt hard enough to buy a House in the Metros today itself-According to Knight Frank it takes average Mumbaikar 308 years to buy a Luxury Home today!!!Also from Knight Frank Home Prices rose in India by an Average of 12%in 2011. Property Prices in Noida Extension (NCR) have already risen by 50% over the last one year. The Noida Extension-Real Estate projects which were supposed to provide Affordable housing to Delhiites; is set to get hit with Price increases of between 30-40% after Disputes between Land Sellers and Buyers were resolved in favor of Land Sellers. As of 25th July, The Authorities of Noida, Greater Noida and Yamuna Expressway Hiked Residential Plot rates by 10.41%, Industrial Plot rates by 7.5% and Commercial plot rates by 15%.Rate of compensation to Land Farmers has also been raised by 10.41%.This will now force the District Administration to raise Hike Circle Rates again; which will eventually be passed onto anyone buying Property in Noida. As of 17th July, The Haryana High Court banned All New Construction Activity in Gurgaon unless they give in writing that they will not use Groundwater in the Construction Process. This will eventually lead to further Construction Delays and Higher costs which will have to be passed onto Consumers according to Navin Raheja(President of NAREDCO).Since 22% of Total Investment in Haryana is in Real Estate sector; this law will lead to massive slowdown in the States Growth rate. As of 16th August, The BMC (In Mumbai) has hiked the Transfer Fee for leased Civic Plots by SIX TIMES!!!The Price charged has gone up from Rs 5000 to Rs 30000 and will continue to rise by 10% every year. Also, Residential Properties built without Permission will be fined Rs 125/sq feet(up from Rs 25/sq feet);Commercial Properties will be fined Rs 200/sq feet(up from Rs 23/sq feet) and Unauthorized structures will be fined Rs 300/sq feet(up from Rs 48/se feet). In Western and Central Mumbai, Property Builders have raised Prices by between 10-20% over last one year. According to Harshad Pimpale of Pimpale Properties,Areas connected by Metro and Monorail in Mumbai of ChemburWadala have seen Prices rise by 20% YoY(as of 20 th August 2012). Also,According to Group Buying Property Portal Groffrs CEO Sandeep Reddy, Developers have hiked prices in Mumbai by between 4%-20% in Last 3 months(as of 20th August 2012).This comes after a 10% Hike that came in January-March Quarter. Accordingly Property Sales have fallen by 35% YoY(compared to 2011) and are down 60% from 2007 peak. In Rajarhat(Kolkata)-Rents and Property Prices have increased by 35-50% since 2009 according to Kumar Shankar Bagchi of Bengal Peerless.

According to Liases Foras Real Estate Rating & Research Property Prices have risen by 33%.17% and 8% respectively in NCR, Mumbai and Bangalore Respectively in the Quarter ending March 2012. According to PropEquity-(As of 15th July 2012)-Property prices in Gurgaon and Bangalore have risen by 60% and 29% in last one year alone respectively. According to Property Consultancy DTZ as of 25th July-Office Rentals in CBDs in Mumbai & Delhi continue to be amongst the Highest in the World($65-75/square meter/month);even Higher than those in New York($63),Washington ($48)and Shanghai($41)!!! This Inspite of the fact that most Commercial Spaces are seeing enormous over-supply[according to Pranay Vakil-Chairman of Knight Frank]. According to Property Consultancy Firm Jones Lang La Salles report as of 27th July; rental and Capital values of Office Spaces in Tier 1 cities like Bangalore, Mumbai, Delhi, Gurgaon, Pune,Kolkata and Pune have risen by over 4% between October 2011-March 2012.Further rises are expected in Bangalore because of its lowest Vacancy rates. The New Service Tax on Property Sales (of 3.1% of Total Transaction Amount) becomes operational from 1 st July 2012. According to National Housing Bank[NHB]-Property Prices have risen by upto 10.5% between April-June The maximum increase in housing prices was observed in Pune (10.5%) followed by Bengaluru (8.7%), Patna (8.6%), Ahmedabad (6.4 %), Ludhiana (5.3 %). Lucknow(4.1%) , Mumbai (3.7%) , Delhi and Kolkata by 2.6% each, Bhubaneshwar, Bhopal and Chennai by 1.7% each, Surat and Guwahati 1.2% each, and Vijaywada and Kochi by 1.1% each. However, housing prices declined in Jaipur by 2.6%, Indore by 2.4% and Hyderabad by 1%, NHB said, adding that prices in Faridabad remained stable . According to Kukatla Srinivas,CMD of Sri AbhayaGold Infratech-Property Prices in Hyderabad have risen by 10% YoY while those in Vijawada have risen by a Whopping 70% YoY(as of 17 th August 2012)!!! 22) According to Prop Equity,45% of all Residential Projects in Indias Three Biggest Property Markets(Delhi, Mumbai and Bangalore) are facing Execution Delays primarily because of these Double Digit Inflation rates. According to Cushman& Wakefield Land Purchases are expected to Decline by 25-30% this year because of Slowdown in the Property Market(as of 28th June 2012). 23) Basic Medicine costs have increased by between 10%-20% in the last one year. According to Outlook-Money &AEGON-Religare Insurance Medical Surgery costs are rising at 17-20% annually (2009-12). The Government has ordered all Public Sector Insurance companies to stop giving Discounts on Group &Individual Health policies from 29th July onwards (to recover their Losses which were close to Rs 1500Crores in 2011-12) .According to V Ramakrishna-Chairman of India Risk Management and Broking Service this will ensure that Premiums for Group Insurance policies will rise between 35-50% and for Individual Policies it will be between 5%-10%!!! All Insurance Companies have raised Fire and Engineering Insurance Premiums for Corporates by 15% (from 14 th August 2012 onwards).The reason given is that Flood protection which was previously FREE is now charged separately. Premium has gone up from 0.15% to 0.25% per Thousand Rupees of the Sum Insured.And more rises are comingReinsurers Swiss Re and Munich Re expect further rises in 2012. According to the Towers Watson Global Medical Trends Report [Out on 1st August 2012];Inflation on Medical Costs for MNCs was 13.25% for 2011[Highest in the World].This has increased from 12.67% in 2010 and 12% in 2009. The Government has decided to go ahead with Entry Loads(of 2%) once again on Mutual Funds. Which means Burden on Common man increases once again.Also, Fresh Service Tax burden will also be passed onto Investors [As of 16th

August].In addition, they will also have to pay Service Taxes(0.16% Charge) on fund Management Charges(earlier borne by MF);They will also be charged upto 0.30% for Funding Rural Expansion of the MF also Short-term Investors will have to pay 0.20% as Exit Load to compensate Long-term Investors in the MF. Also, the Parthasarthi Shome Headed GAAR panel is recommending raising the STT; which will make Buying a nd Selling of Stocks more expensive. This is likely to be passed in the next budget. From 15th September onwards,ICICI Bank(one of Indias largest Providers of Credit and Debit Cards) is going to increase the Charges on Overseas ATM Transactions by 17%.The charges go up from Rs 107 to Rs 125/transaction. The Indian Govt is to spend USD 5.4 Billion (by 2017) to provide Generic Medicines to 510 million Poor Indians [Of which only 1 Billion Rupees has been allocated in 2012]. If this scheme is implemented properly its a Great idea. However, given the past Track record of this Current Govt what is more likely to happen is majority of this Money will either be wasted or land up in the Pockets of Government Officials. This is exactly what Leena Menghaney, a lawyer with humanitarian group Medecins sans Frontieres (Doctors without Borders) told the AFP. "It's a very welcome commitment by the government," "But supply management will be key to ensure the drugs do not end up in the private market," she said, as is often the case with subsidized goods in India . Moreover, this is Money which the Indian Govt does have today. Once again the Taxpayer loses as increased Deficit Spending causes further Weakening of the Rupee leading to more Inflation. 24) Education costs-(Private Schools and Colleges) have increased fees anywhere between 10-25% over the Last one year. And now thanks to the New 25% Reservation for Students based on Income Levels (RTE Act) the Fee Increases will be even Higher over the coming Two years. From 1st July 2012 onwards, the New Service Tax Regime comes into operation. Under this regime, Private Coaching Classes and Training Institutions get Taxed at a rate of 12%; thereby putting Further Burden on Parents!!! 25)1st April 2012- IRB INFRASTRUCTURE has announced 18% Hike in Road Tolls on Mumbai-Pune Expressway in Maharashtra and 8% on Tumkur-Chitardurga Expressway in Karnataka. 26) According to Assocham; AC Manufacturers have raised already AC prices by anywhere between 20% and 35% this Year. Consequently the YoY fall in AC Sales this year is between 40%-50% depending on Manufacturer. To account for the fall in the Value of the Rupee, they are planning another Fresh Hike of close to 5%-10% from July-Aug onwards. 27) From 23rd April onwards commissions made by Fuel Pump Owners/Resellers has been raised by 18% (on Petrol sales) and by 16 %( On Diesel sales).The Consumer will bear the higher burden. In addition the Apurva Chandra Committee has recommended that Hitherto Free Services at Petrol Pumps including-Air Pressure Checks, Filling Air, Toilets and Filtered Drinking Water will henceforth be charged (currently pending Approval from Oil Ministry). 28) New Sales Tax increases (From 10% to 12%), further increasing the burden on consumers all became operational from 1st April 2012. 29) Mumbai-The Dabbawallahs have raised Delivery Fees by Rs 50/month from 24 th April 2012 onwards [This is again more than the official rate of Inflation]. 30) ATF (Fuel used to run Aircrafts) was increased by 5% from 1st April 2012.If you take into account all the Taxes on ATF at the Central and State Level ,India is by far the Most expensive country in the world to run Airlines(On a PPP Basis). So much for the Boom in Aircraft sales to India; Kingfisher Airlines might as well packup today. At one point of time,ATF Prices were raised by 10% this Year, before there were two cuts of 2% each in May 2012.We have now seen a Fresh cut of 2.5% as of 17th June 2012.

ATF prices have now been raised by 1.7% on 16th July 2012,by 4.5% on 1st August 2012, 3.3% on 16th August 2012 and a whopping 7.6% on 1st September 2012!!! According to the latest Figures out from the PPAC (Oil Ministry)-ATF sales fell for the first time in Three Years in March!!! And this is before the April price Rise; how much do you want to bet that Sales would have declined even further in April??? Its turning quite ironic for the PSU Refiners/Retailers [IOC, BPCL, HPCL]-They cant make any money on the Sales of Diesel, LPG and Kerosene [Govt subsidizes Prices in the name of controlling Inflation] and the three products where they can make money (Petrol, Lubricants and ATF) are all beset by Government Diktat (Petrol) and Declining Markets combined with Aggressive Competition (ATF and Lubricants). This is how ATF Prices have changed so far this year(all Prices in Rs/Kilolitre); 64572[1 st March],67800[1st April],67312 [1st May],66660[15th May],65805[1st June],64428[16th June],61168[1st July] ,62,209[16th July], 65,006[1st August] , 67136[16th August] and 72282[1st September]. ATF Prices in India[As of 1st September] are now at All Time Highs surpassing the Highs hit during 2008. And they keep adding more and more Pumps (Again from PPAC figures)-Up 8% this Year. And the stupidity of the Current Govt approach can be seen once again from the fact that Private Sector players [Essar Oil and RIL] are the biggest beneficiaries of the current Govt policy to Subsidize Diesel Because Petrol now costs 70% more than Diesel in India today; Demand for Diesel has risen very, very sharply in India; which the State Refiners are unable to meet from their own production. Hence, they buy 15 million Tons of Diesel from Essar and RIL(annually) at Market rates!!!Thats 24% of Indias Domestic consumption of Diesel-Source PPAC/Oil Ministry. How much do you want to bet that the Government will have to Bailout these companies (to the Tune of atleast 20-25 Billion Dollars this Financial Year????).By the way this is Money which our Government clearly does not have. 31) Domestic Indian Airfares are up 30-60% YoY according to Expedia and Makemytrip.com; Because of these increases Holidaying Indians prefer to fly abroad rather than Holiday within India-End Result Indias Hospitality & Tourism Industry loses out to Foreign Competition. As per Latest Budget in April 2012,Service Tax was being levied on 40% of Gross Value of Air Ticket compared to just 10% earlier. This was also capped previously at Rs 100(for Domestic Flights) and Rs 500(for International Flights).Consequently Demand for Domestic Air Travel is expected to Fall by 12% over the coming year. According to Jet Airways Chief- Naresh Goyal-Indian Airfares cost 200%-300% more than in China primarily because of Extremely High Taxes on Airfares. Between 1st June and 1st July the Following new charges have been added by most Indian Airlines. a)Date Change/Ticket cancellation Fee-Rs 750 to Rs 950[For Domestic Passengers] and Rs 750 to Rs 1750[For International Passengers]. b) Excess Baggage Fees have been raised from Rs 100 to Rs 200/kg. c) Fees for unaccompanied Minor have gone from ZERO to Rs 1000-1500(Domestic Flights) and Rs 20003000(International Flights). d) Taking Licensed Weapon abroad Fees-Raised From ZERO to Rs 5000. e)Charge for Ticket Printout-Raised from ZERO to Rs 50. From 1st September 2012, onwards Airlines flying in India are all set to announce Fresh new Charges to make Money of Passengers. Particularly, the decision to reduce Baggage Allowance from 20Kg to 15kg per Passenger.

Business Class Fares have risen by 45% YoY(as of 1 st August 2012);according to MakeMyTrip.com As of 19th August, All Indian Airlines have hiked the Fuel Surcharge they charge Travelers by over 6%.For anyone travelling upto 1000Kms;Fuel Surcharge has gone from Rs 1500 to Rs 1600 and for anyone travelling over 1000Kms ;Fuel Surcharge has gone from Rs 2400 to Rs 2550.Once again Air Travel is expected to take a major Hit! The Airlines are petitioning DGCA to let them charge Passengers for Pre-booking Seats.The DGCA is in favor of this move.Which means another fresh charge is going to Hit Domestic Air Travelers in their face very soon(as of 29th Aug). Is it any surprise that according to latest DGCA data, Air Travel Passengers for July fell by 10% compared to last year? Also, we are now back to 2005 levels for Passenger Growth Numbers.CMIE Now expects Growth Rate to average 7% in FY 2012-13(as of 29th August) as against 11% in March 2012. 32)The AAI[Airports Authority of India] is about to levy a new UDF[User Development Fee] of Rs 400 one way(Domestic Passengers) and Rs 900 one way(International Passengers) at the new Kolkata and Chennai Airports once they become Operational from June 2012 onwards. On New Delhis New IGI Airport-The New Approved UDF to be operational from May 15th is going to be between Rs 436-Rs 1068 per International passenger Journey & Rs 195-Rs 462 per Domestic Passenger Journey; even if Passengers are simply transiting through IGI.These charges work out to a 346% Price Rise. These New charges make New Delhi Airport the most expensive in the entire Asia-Pacific Region. However, the Private consortium running the Airport DIAL[Delhi International Airport ] is unhappy with this Price Rise and considering going to Court over this issue; They are looking for atleast Double the approved Price Hike. All these new charges will ultimately be borne by the Passenger. Consequently one can expect Passengers using the Airport to fall by around 5% as per IATA figures. On Mumbais New Airport-A New Airport Development Fee [ADF] of Rs 100 for Domestic Passengers and Rs 600 for International Passengers comes into action from May 1 st onwards.However,the Private Consortium running MIAL[Mumbai International Airport] is looking for a 500% Hike in the User Development Fee[UDF] at this Airport. It is currently pending approval with the AERA[Airport Economic Regulatory Authority].If both rises become operational, flyers using Mumbai Airport will see their Ticket prices rise by between 15%-20%.This will come just after the Prices of Tickets have already risen by over 30% in the last one year alone thanks primarily to increases in Service Taxes and in Fuel Costs. The AAI, has almost TRIPLED Ground Handling Charges at 60 of the Airports it controls all across India (as of 1 st August 2012).This will further increase Operating costs for all Indian Airlines which will then be passed onto Consumers In the form of Higher Fares as well as Higher Inflation (Air Cargo).Previously, Ground Handling companies were required to pay 13% of their Revenue (as Royalty) to AAI,now that has been raised to between 32-36% from 1st August 2012. The damage to Indias Tourism and Hospitality Industry? Incalculable. 33) The Government plans to Bailout Air-India by infusing USD 6 Billion into the Debt-laden Airline over the next 5 years. This is money which the Govt does not have. How does the most inefficient Airline Globally repay this largesse??? By Going on Strike demanding Guaranteed Promotions and Better Pay between 8th May and 4th July 2012.Total Losses incurred by Air India (ultimately to be Borne by the Taxpayer )so far? USD 110 million. The result was Airfares which had already risen by between 30%-60% over the last one Year (YoY) have now doubled in the space of little over a week!!!

Not just that, Guess who was the Biggest Beneficiary? The Dubai Govt owned Emirates Airlines-which saw Traffic Numbers pickup by 20%. End result? Taxpayers lose each and every way you look at it. 34) From 1st August 2012 onwards, The Delhi Government has decided to Hike All Court Fees by 10 Times!!! 35) According to the 12th Five Year Plans-The Government of India proposes a Green Tax of 7.5% on New Petrol Cars and 20% on New Diesel Cars. 36) From 2nd May 2012 onwards, Hero MotoCorp (Indias largest Two Wheeler Manufacturer) increased Prices of all its products between Rs 500 and Rs 1000.The main reason Given-Rising Input Costs. From 1st June 2012 onwards, Toyota Kirloskar has increased Car prices by upto 2% on all Diesel Models to account for the Rupee Depreciation effects. In addition Maruti, GM and Hyundai are also Planning Price Increases for the same reason; this comes after Car Prices have already risen by between 2%-5% since the Beginning of the Year.From 1st September 2012 again, Toyota will be raising Prices by 1.5%. From 1st September 2012 onwards,Escorts is increasing Prices of all its Tractors by 2%-3% because of Rising Prices of Steel and Rubber according to CEO S.Sridhar.He also predicted competitors would follow suit shortly.Also,most other Tractor Makers have already raised prices by atleast 2% in 2012 so far. According to Umesh Karne & Manashwi Banerjee of BRICS Securities- Maruti Suzuki plans to Hike Prices of all Diesel cars by between 2%-3% from 1st November December 2012 onwards to compensate for Higher Wage Costs. M&M has already seen Raw Material Costs as a Percentage of Sales increased sharply from 68% to 71% in the last one Year. A Report prepared by Muthoot Securities says that Prices of Key Raw Materials that go into Auto Production have increased by 9%(Steel),18%(Aluminum) and 54%(Rubber) Annually between 2009-2011.This Years increase will be a further Add-on Double Digit Increase. Operating Margins of all Auto companies have gotten hammered this year because of High Input costs. The only Companies which have reported better margins this Year are Eicher Motors and TVS Motors. According to Vikram Malhotra-VP of Sales at JK Tyres-If The Rupee stays at current Levels[as on 27 th June 2012];they will be forced to raise prices of Tyres by atleast 15% to account for rise in Cost of Imported Rubber. According to K Srinivas-President at Bajaj Auto-If the Rupee stays where it is today[as on 27th June 2012];they will be forced to raise prices in July August period. This will be the second Increase after they had earlier increased prices in January 2012. As of 11th June 2012, The Prices of all Passenger Cars(Diesel and Petrol) have risen by between Rs 30000-Rs 1 Lakh in the last Three months alone. Daimler Benz plans to increase Prices of its Trucks(under Brand Name-Bharat Benz) between 5%-10% from 1st Sept 2012. Consequently the Latest Passenger Car Sales (April-May 2012 period) have fallen to 2.78% YoY Growth .This is the slowest pace seen since October 2011.And Demand shows no sign of picking up primarily because of Negative Economic Sentiments. Thanks to the Policy flip-flops which are endemic to this current UPA Administration; first Car owners had to shell out Thousands of Rupees to install Sun films on their cars under the Central Motor Vehicle Rules Act[CMVR] then the Supreme Court announced a Ban on all Sun films which forced Car Owners to Shell out Rs 300-Rs 1500/Car to Remove them!!!

And we are not yet done. To account for the losses made on Selling of Subsidized Diesel to the Public; the Government plans a Fresh Excise Duty of Minimum Rs 80,000 on All New Diesel Cars. Because Sales of Petrol Cars have crashed as the Price Differential between Petrol and Diesel has soared, Maruti has been forced to Shut Production of Petrol Models - Alto, M800,A-Star,Estilo and Omni in 1st week of June . Tata Motors has shut Production of all Cars manufactured at their Jamshedpur plant from 28 th-30th June and also shut production of all Commercial Vehicles manufactured at the Pune Plant in 1 st week of June because of poor demand. Bosch India has shut its plants in Jaipur and Bangalore in last week of June because of poor Demand. GM India has instituted one No Production Day every week at its plants in Halol and Talegaon for all Cars;This No production day will continue till October 2012[Diwali period]. Fiat India is also considering shutting its production plant in July-August. Bosch India stopped production at their Bangalore plant between July 27-30 & their Nashik plant between July 30-31; Again In August, The Bangalore plant was shut on 11, 13,14,25& 27;The Nashik Plant was shut between 17-31 & the Jaipur plant was shut on 16,17,18,27,28 and 29th because of poor Demand. If the Diesel Excise Duty does become Law then all Diesel Car Manufacturers will be Hit and they will also be forced to shut down plants. The Finance Ministry has asked (as of 4th August 2012)all PSU Insurers to Raise Motor Insurance Premiums by atleast 40% to cover their losses (Rs 6314 crores) incurred in 2011-12.This is sure to make Owning a Car much-much more expensive today.Also,the Government has stopped them from dealing with Bulk Motor Business & No commissions are to be paid by Insurers on Vehicles older than 10 years (which means people will be forced to upgrade cars even if they are in Good condition). From 3rd September onwards,All Personal Automobile Owners[Two-wheelers,four-wheelers and Minibus owners not registered as Transport Vehicles) in West Bengal will have to pay a Lifetime Tax on their Vehicles. 10 per cent of the value of the new vehicle upto 900 cc or Rs 40,000, whichever is higher, would be the rate of life time tax, while 5.5 per cent of the value of the vehicle or Rs 17,000 whichever is higher would be the rate of one-time tax. The existing tax rate is approximately Rs 20,000 for five years. This will increase to Rs 22,000 For new vehicles between 900 cc and 1490 cc, life time tax would be 10 per cent of the value of the vehicle or Rs 55,000 whichever is higher, and rate of one time tax 5.5 per cent of the value of the vehicle or Rs 25,000 whichever is higher. The existing tax rate is approximately Rs 20,000 for five years. This will increase to Rs 22,000 Similarly, for new vehicles between 1490 cc and 2000 cc life time tax would be 10 per cent of the value of the vehicle or Rs 80,000 whichever is higher, and one time tax 5.5 per cent of the value of the vehicle or Rs 35,000 whichever is higher. The existing tax rate is approximately Rs 20,000 for five years. This will increase to Rs 22,000 For new vehicles more than 2000 cc life time tax would be 10 per cent of the value of the vehicle or Rs 1 lakh whichever is higher, and one time tax 5.5 per cent of the value of the vehicle or Rs 45,000 whichever is higher. the five-year tax that is Rs 35,000 now, will increase to Rs 45,000. The tax rates would be less for old vehicles or those already registered according to their years of registration, Life time tax of newly registered two wheelers have also been announced. According to Tata Motors and M&M Commercial Vehicle Mini-truck sales Growth has fallen to 5% from 16% last year!!!According to SIAM; Total Commercial vehicle Sales in April-July Period was down 13% YoY. Production was also down by 4.3% YoY.

To combat the Slowdown in Commercial Vehicle Sales in India, The Commerce Ministry is Proposing Phasing out(through Bans);all Trucks which are more than 15 years old(as of 31 st August 2012).The problem with this policy is that it is sure to increase Inflation(as the New trucks will cost a lot of money);also if this move is done irrespective of whether the Truck which is about to be scrapped is in Good Condition or not ;a lot of perfectly fine trucks will be destroyed to bail out Private Sector Manufacturers. 37) OMIFCO-the Oman-India Joint Venture Fertilizer Company; which supplies nearly 2 million Tonnes of Urea and Ammonia to India Annually has increased Input costs by 100% retrospective from 1st April 2012 onwards. They have also put in place Automatic Annual Price Rises so that Input prices will double again in 2015.Consequently; Indias Fertilizer Subsidy Bill goes up by nearly 150 crores in 2012-13 and will Rise Further over the coming three years. From 1st June 2012 onwards,Fertilizer Companies plan to raise Prices of Unregulated Products like DAP,NPK and Potash by 30%.The Price Hike is coming Primarily because of a Sinking Rupee and Subsidy Cuts. Most Farmers will be unable to Bear this Increase in Prices, which means they will cut consumption of Unregulated Products and move more to Regulated Product-Urea; Further inflating the Fertilizer Subsidy Bill(which once again Leads to more Weakness in the Rupee). Already Sales of Non-Regulated Fertilizers have fallen by 5%(YoY) primarily because of Cost Increases and the CEO of Tata Chemicals expects a Bigger Fall before 2012 is over. The prices of Non-regulated Fertilizers-DAP,MOP and NPK have Doubled(as of 29th June 2012) compared to same period last year according to RG Rajan-Chairman of Rashtriya Chemicals & Fertilizers. The Government plans to raise Urea Prices by 10% from 1 st September 2012. RIL-The Operator of KG-D6 Gas Fields in India has proposed to TRIPLE The Price at which Gas is supplied to Indias Fertilizer and Power Companies(from the Current $ 4.02/MMBTU to $12/MMBTU) from 1 st April 2014.In addition they would like to link Gas Prices to Crude Oil Prices Globally. Which means if Crude Prices rise, Your Power and Food prices go up too!!! 38) Telecom Users, who are already reeling under Pressure of Increased Tariffs in light of Higher Service Taxes levied by the Indian Govt are now likely to see even Higher Tariffs of as much as 12-15 paise Higher/Minute thanks to the Much Higher Base Price to be charged for 2G Services in India-According to Industry Sources. The TRAI has a much lower figure, for the price rise to be seen by consumers- About 3-5 paise/minute. This price hike will probably happen around the June-July period once the 2G Auction is successfully concluded. The latest study conducted by COAI-E&Y has put the Tariff rise at 26 paise/Minute!!! The First shots here have already been fired by Vodafone which has increased Post-Paid Rates by 20% from 1st May onwards for Customers in Mumbai. The DoT has increased the License Fee (called as Adjusted Gross Revenue) charged on all Telecom Providers by 7% from 26th July onwards. If The DoT does not reconsider; All Telecom Providers plan to pas s this Tariff Hike onto Consumers (In the form of Higher Internet Fees) within the next few months. 39)Delhi Government plans to raise Car Parking Fees for Delhiites to Rs 50 for 3 Hours and Rs 50/hour after that (Peak Hours) and Rs 30 for 3 Hours and Rs 20/Hour after that (Off-Peak hours) as a way to combat Pollution. This will more than TRIPLE the existing Parking Charges. These new charges will be levied most probably from 1 st October 2012 onwards. This Fresh hike comes after the 30% raise that was put in place from 1 st January 2012.That the Fresh charges will happen was re-confirmed on 16th August by Lt.Governor Tejinder Khanna.

40) Delhi Government has announced a New Luxury Tax amounting to 3% of Total Transaction Cost on anyone using Gyms,Saunas,Spas,Health Clubs, Banquet Halls and by 10% for Hotels with Rates of more than Rs 750/Night from 1st July 2012. Delhi Government has Hiked Diesel Prices by 37 Paise per Litre from 18 th June 2012(by withdrawing The VAT Exemption that was in place since September 2011). 41) Delhi Govt has Increased Excise Duty on Alcohol (Hard Drinks) by 50% from 1st July 2012.Only Beer and Wine have been spared the Hike. Last Year Prices were increased by between 10%-15% on Enforcement of New Delhi Excise Rules 2011. Kerala has raised Prices of all Alcohol [IMFL] excluding Beer by 6% from 1st August 2012.It will amount to a price Hike of between Rs 10-15/Bottle of Alcohol. 42) Foreign Manufacturers of Consumer Electronics like Panasonic, Dell, RIM, Samsung, Acer,Canon,etc all Plan to raise Prices by upto 6% from 1st June 2012 to account for the sharply Falling Rupee. This comes after a 6% rise seen in the Month of April because of Rising Input Costs and a 2% Hike in Excise Duties. These companies had also increased Prices by 12% in 2011. Lenovo Indias Market Leader in Computers Hiked Prices by between 3%-5% of all its products from 1st May 2012. Nikon- Indias Market Leader in Digital SLR Cameras has increased Prices of selective High-end SLR Cameras by between 7%-8% from 1st May 2012.However,they are not yet done. If the Rupee does not strengthen soon they are planning a Fresh Price Hike of between 5%-10% across their Entire Market Range from 1 st July 2012. Dell has raised the Prices of its Computers Range by between 5%-10% from 1st June 2012. Ricoh India has increased Prices of its entire Office Management product range by 5% from 1st June 2012. Panasonic India raised Prices of White Goods by 4% and 3% on all TVs from 1 st July 2012.This comes after another Hike of 4% that came in January 2012 according to Manish Sharma MD of Panasonic India. Haier India raised Prices of Referigerators, Washing Machines and TVs by 3-5% from 21st June 2012.Since the Beginning of the Year they have increased Prices of Referigerators, Washing Machines and ACs by 6%, 7.5% and 17.5% respectively according to Haier India President-Eric Braganza. Sony India, Whirlpool and Fujifilm also plan to increase Prices from 1st September 2012 onwards. Punjab Government has imposed a 8% Lump Sum Tax and 10% Surcharge on Mobile Phones and all Mobile Accessories sold in Punjab from 20th July onwards. Credit Growth to the entire Consumer Durables Sector is 17% Down in April 2012(YoY).If this does not indicate a Slowdown I dont know what it indicates-According to Dhananjay Sinha of Emkay Global Financial Services. 43) Jubilant Foodworks-The Company behind Foodbrands like Dominos Pizza and Dunkin Donuts in India raised Prices Three times over the course of the last year. All in all, Prices have been raised by well over the Official Rate of Inflation in One Years time. Other High-end Restaurants in Indias Three Biggest Markets-NCR, Mumbai and Bangalore have also raised Prices by between 10%-30% over the Last one Year alone!!! From 1st October onwards, Moods Hospitality (owner of Yo China! Group of Fast Food Outlets) plans to raise Food Prices by 20% according to CMD Ashish Kapur. They will start first hike prices at New Outlets and then at Existing outlets too.

44) The Govt owned Oil Marketing Companies raised Petrol Prices by Rs 7.5/Litre from 24 th May 2012 onwards all over India. Taking into account the fact that some States have Cut State Level Taxes on Petrol Sales, the Hike varies from Rs 3-Rs 5 /Litre. This works out to a 12% Rise in prices in Delhi Alone!!!After Recent Price cuts seen on 1st June (Rs 2/Litre) and 27th June (2.25/Litre); Prices are still Rs 3/Litre higher than where they were in the January- May period this year [4.5% Increase]. The OMCs raised Petrol Prices by Rs 0.70/Litre from 24 th July onwards. According to Chairmen of IOC and HPCL; they are today losing about Rs 3/Litre on Petrol Sales[As of 7 th August]-Which means more rises are Coming!!! This is how Petrol prices In Delhi have changed this year- Rs 64.60/Litre(1st Jan-23th May),Rs 72.10(24th May),Rs 69.10 (1st June),Rs 67.78(27th June),Rs 68.48(24th July). Punjab Government has imposed a Fresh 12.5% VAT on all kinds of Lubricants including Transformer Oils and Rubber Processing Oils from 20th July onwards. As part of a major Sales Tax rationalization move; to recover Irrecoverable State Taxes ; Kerosene prices in 8 states have been raised while Prices in 9 states have been reduced from 25 th July onwards. LPG prices in 6 states have been raised while Prices in 12 states have been reduced from 25 th July onwards. Petrol & Diesel prices in 7 states have been raised while Prices in 11 states have been reduced from 25 th July onwards. Big Increases were seen in LPG Prices in Assam(5%),Bihar(2.5%) and Maharashtra(2.2%);While Major Decreases were seen in Gujarat(2.5%),Tamil Nadu(1.8%),West Bengal& Odisha(1%). Big Increases were seen in Kerosene Prices in Assam (5.7%), Bihar (5.4%) and Maharashtra (2.3%); While Major Decreases were seen in Gujarat (1.2%) & Jharkhand (1%). Big Increases were seen in Petrol Prices in Assam (3.0%),Bihar(1.1%) ,West Bengal(3.5%)and Maharashtra(1%);While Major Decreases were seen in Karnataka(1.4%),Goa(1.5%),Gujarat(1.2%) , Jharkhand(1%),Tamil Nadu(1.4%) and Odisha(0.6%). Big Increases were seen in Diesel Prices in Assam (3.4%),Bihar(3.4%) ,West Bengal(2.3%)and Maharashtra(2%);While Major Decreases were seen in Karnataka(1.4%),Goa(1%),Gujarat(1%) and Odisha(1%). The Indian Government increased Prices of Diesel by 14% from 14th September 2012 onwards-By Rs 5.62/Litre(including all Taxes).The price in Delhi of Diesel is Now Rs 47/Litre[Against Rs 41.32 earlier].Previously prices were raised by Rs 3.37/Litre on June 2011.The Cascading Inflationary Effects will be Massive!!! 45) Apparel Brands are planning Price Rises of upto 15% to account for a Declining Rupee. This comes after the Brands have already increased Prices to account for Rise in Cotton Prices as well as Excise Duty rise in the current Budget. Reliance Brands (Company behind Brands like Diesel, Timberland and Zegna) plans Price Rises of upto 8% on spring 2013 collection. Chicco, Fila and Louis Philippe raised Prices by 15%, 10% and10 % respectively from July-Aug 2012 onwards. The smaller Brands plan to wait for now and see what kind of impact the Big Brands Price rises has on the Market before they too raise Prices.

Primarily because of Poor Monsoon and less interest by Farmers in Cotton; Cotton Prices in Domestic Market have moved Higher[Prices have already moved up by Rs 356/Kg as on 30 th June 2012].The increase in Cotton Prices will eventually be passed on to consumers in the form of Higher prices for Apparel Wear. According to Southern India Spinning Mills Association [SIMA] Chairman-S Dinakaran(as on 15th September 2012);the Diesel Price Hike would raise the Price of Yarn by between Rs 4-Rs 17/kg (depending on the Quality of Yarn).Because Demand for Yarn continues to be anemic[Both Internationally& In India];many Handloom& Powerloom Units(employing Millons today) may have to reduce employment substantially by shutting units. 46) The UPA Govt led by Mr.Manmohan Singh has announced support of USD 10 Billion to the Eurozone to tackle its Debt Burdens as part of the IMFs Expanded Firewall on 19 th June 2012. This is once again money that the Govt does not have and will most probably involve a combination of Increased Govt Borrowing and use of RBI Reserves; further pressuring the Indian Rupee and leading to more Inflation in India. Since the Size of the Firewall is insignificant (The Entire Eurozone needs Trillions of Dollars to stave of total Economic Catastrophe); our 10 Billion Dollar contribution will be equivalent to throwing more Good Money after Bad without resolving the core of the problem which is caused by unsustainable Welfare States in the Eurozone. 47) The Monsoon on whom Majority of Indias Agriculture depends was 36% below normal in the first week. In the Second week of Monsoon, Rainfall was 26% below Normal and there is going to be a delay of atleast 3-4 more days before Monsoon progresses further[As of 21st June 2012]. As of 27th June ,70% of India has gotten Less Rainfall than expected with one-third of the country has seen a drop of more than 60% below Normal!!! As of 19th July,The latest Met office estimated figures of overall rainfall for the country at 96 per cent of the long period average (vs 99 per cent as predicted in April) is thus a concerning factor.The North-West, Central and the Southern states of India have till date received less than normal rains (36 per cent, 22 per cent and 27 per cent below normal). As of 5th August, The monsoon is 17% below normal[IMD];also Gujarat,Maharastra,Karnataka and Rajasthan are facing Drought-like conditions today. The first Victims are going to be Soyabean Farmers in Madhya Pradesh(where a majority of Indias Soyabean Production comes from) which will cause a proportionate rise in Egg Prices(see Point 9 above). The Central Rice Research Institute has already cut Rice Production Targets by 4% compared to 2011 levels because of Inadequate Rainfall so far. There is a strong possibility due to El Nino factors that this Years Monsoon may be below Normal Levels. If this does happen then Food Prices as India depends heavily on Rainfall for more than 55% of its Food Production(& which are already rising at Double Digit rates) will shoot even higher.Also,there is a strong possibility that Electricity Prices (as more people use ACs and Coolers) rise too to keep up with Higher Demand. The poor Monsoon so far has already increased Cost of Farming for most Small farmers tremendously as they are forced to use Diesel powered Generators to run Tubewells to irrigate the fields in the absence of Both rainfall as well as Power. Things have gotten so bad that many Small Farmers are forced to sell their Family Gold to buy Farming Inputs!!! 48) The RBI has announced an Increase in FDI Caps in Government Bonds, Private Sector Bonds and Infrastructure Bonds on 25th June 2012.The hope is that this will save the Sinking Rupee.However,since Existing Caps have not yet been fully utilized the effects will be minute at best.Also,it actually makes our Rupee more hostage to Volatile Global Capital flows. Which means Inflation could actually go up much-much more!!! 49) The Government has announced Caps on LPG Cylinders from 14th September 2012 onwards. Basically,on every account/Ration card you can now onwards buy only 6 Cylinders/annually at the Subsidised rates.If you buy any more

than this number you will have to pay Market Price per cylinder[Which means price of each Cylinder will be close to Rs 750/cylinder!!!]. According to RBI Chairman-Subbarao;[As of 7th August]this move along with Full Fledged Diesel De-regulation will raise Inflation rates by close to 3%!!! 50) Full Fledged Implementation of the New Service Tax regime becomes operational from 1 st July 2012.Except for 38 items which are on the Negative List everything else which fall under the Definition of a Service gets taxed at 12%!!! 51)Karnataka has increased VAT rates for all Consumer Goods including Electronics by 0.5% from 1 st August 2012.For some items it will be 5.5% and on others it will be 14.5%;consequently Prices of all consumer good will rise significantly from 1st August onwards. This is the second time in less than 3 years that the VAT has been hiked. It was previously hiked by 1% on 5th May 2010. UP increased VAT by 0.5% from 5th September 2012 onwards-In addition to 12.5 per cent VAT, which is imposed on certain items, additional tax has been increased from existing 1 per cent to 1.5 per cent. It will make ACs, refrigerators, motor cycles, cosmetics, shampoos, sanitary goods, tiles, electrical appliances, transformers, water purifiers, cameras, mobile phones (costing more than Rs 10,000), cooked food supplements, industrial LPG, watches, cranes, cement, machinery and others goods costly. 52)The New Delhi State Government plans to Privatize Delhi Jal Board from 2013-2014.Accordingly it has already signed a Technology Transfer for Waste Water recycling with Singapore Based NEWater. As Delhiites are forced to start paying the real price for Water, expect Inflation to rear its head from this New Source too!!! But the Big Inflation Bombs are yet to come. The Govt owned Oil Retailers (IOC, BPCL and HPCL) are today losing Rs350/cylinder on Cooking Gas[In addition to Rs 20/Litre on Diesel Sales & Rs 35/Litre on Kerosene Sales]-According to Petroleum Planning and Analysis Cell (PPAC) an arm of the Petroleum Ministry(as of 1st September 2012). In addition, there is a significant possibility of Complete Diesel De-Regulation (which means the Price of Diesel will rise by atleast 31%) before 2012 is over-According to C.Rangarajan (From the Prime Ministers Advisory Council) .The RBI is also pushing aggressively for the same. Coal India(under Pressure from Minority Shareholders) is to increase Coal Prices by 25% from September 2012.The follow-through on Electricity Prices(& Inflation from Manufactured Products ) all across India is going to be massive(10% Hikes are a foregone conclusion).Also, The Power Ministry has already approved Adding a Fuel Surcharge to Electricity Bills on an All-India basis.Consequently,as Coal/Natural Gas/Diesel Prices rise your Electriticity Bills will rise too!!! This surcharge will be re-calculated and changed (according to variation in Fuel prices) every 3 months. And this is all before a (totally Inexplicable in my opinion) Interest Rate cut of 0.50% by the RBI on the 17th of April (with more cuts to come in August- October period)and a highly probable launch of QE3 by the US Federal Reserve in September & LTRO3 by ECB in August-September What will all this do for Inflation? Real Inflation will then hit 20% per Annum!!!!

Is it any wonder that the only Chart that makes any sense for a Genuine Saver is this one? http://www.bullion-rates.com/gold/INR/Year-5-chart.htm

Are you also seeing Price Increases of all your Day to Day necessities exceeding the Official Numbers of 7%-8%? Please add it in the Comments Section below or Email me so I can update this list heretechnoconsulting4smbs@gmail.com ORIGINAL DOCUMENT CAN BE FOUND HERE http://www.scribd.com/doc/87695628/Double-Digit-Inflation-is-Back-APRIL-2012