ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Opposition Parties- Slowly Paralysed

sweeping nature of the price rise, a fairly large number of fertiliser producing units will now enjoy a widening of profit margins. The oil crisis has already been made the general alibi for raising the prices of fertilisers across-the-board, though it would be difficult to establish a precise quantitative relationship between, for example, the increase in price of such intermediate petro-chemical products as naphtha and the announced rise in fertilisers. As in all such cases, the price increase for each of the specified fertilisers has evidently been dictated by the cost structure of the least efficient unit. This is, in fact, one of the worst aspects of the 'cost plus' principle. The administrative decision to allow the general price increase, without even the face-saving device of referring the issue to either the Tariff Commission or the Bureau of Industrial Costs and Prices, will make life that much more cushy for a large number of units, both private and government, which in the past, too, have seldom bothered to take the minimum measures for efficient plant management.

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