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

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GUJARAT- How Officials Sabotage Land Reform

ed, the picture that emerges is not one of recession. Cloth prices, especially prices of the better varieties, have risen very sharply in the last two years and mills have been making very high profits. All that has happened is an arresting of the rising trend of prices. Partly this may be the result of some market resistance to the continuous price increases; partly this may be due to some temporary dislocation in the cloth trade's financial arrangements as a result of the ebb and flow of black money. Yet another possibility is that the textile industry and trade may together be indulging in some scarce- mongering to beat down the price of cotton at the beginning of the cotton marketing season. Whatever the explanation, it is evident that there is no case whatsoever for any relaxation of credit policy. On the contrary, the monetary authorities should so use the credit instrument as to ensure that the declining trend in cloth prices is strengthened and the price fall extended to all the varieties of cloth. Instead, what seems to be happening is that at the first faint sign of any fall in prices, the Commerce Ministry is rushing to the industry's assistance.

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