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

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Rupee-Rouble Agreement

by recommeding Rs 115 per quin- tal as the procurement price for the next year. The prices have been recommended on the eve of the sowing of the crop, unlike in the past when this was done before the start of harvesting. The Commission at this point has no way of meaningfully assessing the crop situation, the supply-demand balance and the likely impact of its recommendations on the structure of relative prices in agriculture and between agriculture and industry and the overall price situation. It is doubtful that it had time to make any worthwhile examination of the trends in production costs on which the recommended increases in prices are ostensibly based. But moves are afoot to hurriedly knock-together another suitable machinery to report on production costs wich will be more prone to satisfy the rich farmers' interests than make an objective study of the problem. The trend in this direction is clear enough from the manner in which the majority in the Commission has persuaded itself to make a case for an increase in procurement price because prices of inputs are said to have increased. The "parity" principle in price fixation, for THE recent rupee-rouble exchange rate agreement reached between India and the USSR removes a major irritant in respect of economic relations between the two countries. Of course, this is not the first time hat the two countries five had to deal with the problem of exchange rate changes. When the rupee was devalued in mid-1966, the Soviet side had asked for a corresponding adjustment in the rupee-rouble exchange rate. But then the problem was somewhat simpler .than now for several reasons.

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