The ascendency of India as an economic world power

India has over 1 billion people and feeding this huge population is a mammoth task. Most people in India are poor and rising inflation can only make matter worse for them. Fortunately, India is a democratic country and the political leaders have to go to the door of the people for votes from time to time. So, Indian government has to act now to curb the price of essential commodities. In a surprise move, Indian government has put a halt to new trading of wheat and rice.

Reuters reported:

India, under pressure to cool two-year high inflation, on Wednesday banned new wheat and rice futures contracts, but analysts said the move was futile as improved supplies would curb prices.

"As per the directives of the Forward Market Commission, it is hereby informed that no new wheat and rice contracts will be launched till further notification," the National Commodity and Derivatives Exchange Limited said.

"In respect of running contracts in these commodities, no new position can be taken. Only squaring up of positions shall be allowed," it said in a two-line notification.

I am not sure that if it would be enough to curb the increasing price of essential commodities. Rice and wheat are the two major food items for Indian people. Indian officials are too much occupied with outsourcing and FDI. So, they often fail to give enough time and attention to the problems of common people. I think that Indian government should take some decisive steps to curb inflation.