Inflation has dug the biggest hole in the pockets of middle class. First, job losses and salary cuts due to Covid-19 pandemic, then rise in petrol and diesel due to global oil price rise and now vegetables prices going up the roof, the middle class are left with no choice but to surrender to their fate and hope for a salary hike.
The poor get ration subsidies while the rich feel no impact. Ultimately, it is the middle class who face the brunt of rising inflation. What is the solution then?
When it comes to food price rise, one can think of middle term solutions. These include re-exploring the merits of the now revoked farm laws, reducing the dependence on profiteering middlemen, empowering farmers to sell their produce directly in the market, establishing direct market linkages between farmers & agri- start ups, facilitating direct procurement by organic, other agri firms, exploring tech-based solutions to improve produce, reducing the food wastage, improving storage facilities and improving transportation facilities and agri supply chains.
Some of the ways in which we can tackle the fuel price rise include tapping into own reserves, buying more oil from Russia and Iran, reducing taxes levied by state and center, getting fuel under ambit of GST, lowering excise duty on fuel and providing subsidies for alternatives.