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Price hike hits Indians
NEW DELHI. Dec 28: Millions of Indians Saturday were hit with sleep 20 to 30 per cent hikes In the prices of rice and wheat, staples of the Indian diet, as newspapers warned of a hefty hike in coal prices, reports AFP.
The increases — 20 per cent for wheat and between 23 and 30 per cent for rice depending on the grade — affected millions who used lo buy their food at 'fair price” shops with ration cards issued to bona fide residents.
The United News of India (UNI) said the hikes were designed to try lo trim a yawning budget deficit of some three billton dollar through cuts tn food subsidies, and added the cabinet "is believed to have decided" to hike coal prices by 30 per cent.
Newspapers which headlined the rises Saturday also, carried news that Indian President Ramaswamy Venkataraman and the gover-
nors of all states had agreed to a 10 per cent cut tn their salaries as an austerity measure.
In the national capital, New Delhi, the price rises came on top of a snap doubling of bus fares which drew angry protests from the country s strongest opposition party, the Bharatiya Janata (Indian peoples) Party (BJP)
Prices of most consumer goods, especially luxuries, have risen steeply since the government in June embarked on a crash programme lo bail the country out of its worst ever economic crisis.
The food subsidy slashes follow a devaluation of the rupee, tax hikes on luxuries and stiff import curbs.
Stock markets dose optimistic
Another despatch from Bombay adds: Indian stock markcis closed 1991 on an optimistic note, with the Bombay
Stock Exchange (BSE) sensitivity index climbing 35.5 points to cfaee al 1,908.8 in two days of trading, reports
BSE national index gained 14.7 points to reach 890.3 at close Tuesday.t he last trading day before the markets reopen January 2.
With the government expected lo announce policy changes for two major industrial sectors, pharmaceuticals and steel. in the coming days, that could lead to a further 11b realisation in these areas analysis were hoping for a positive beginning to 1992 as well
Associated Cement Companies moved up by 165 rupee to close al 3.125. Bombay Dyeing gained 50 at 432.50 and Century Textiles rose 75 U> 6.880.
Glaxo India shed five rupee at 230. Reliance Ingvirles
Engineering lost 3.75 to close at 283.75.