UPSETS INDIAN PRICE STRUCTURE
[On June 5 ‘the’ Indian government announced a 36.5% devaluation of the rupee. Against the. previous quotation of 4.76 rupees for $1, the new quotation is -7.5..-The ‘immediate repercussions in India of this measure were reported by the news agency, Hsinhua, in a- June 8 Peking dispateh as. follows: Jo .
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The Indian government's announcement on the devaluation of the rupee under U.S. pressure has led. to soaring prices, a buying spree and market cha6s. everywhere in India, according: to press reports ‘from New Delhi. — . -
The Times of India reported today that prices registered an increase of 50 percent since June 4 in New Delhi and prices of consumer goods continued to rise yesterday. Soap. and: toothpaste and other goods-increaséd by 30 percent. Vegetable oils, electric appliances and rubber goods also went up.
The Patriot reported today that admost all essential commodities have shot up by 10 to 20 percent in Bihar. Since June 4, the fine variety of rice has gone up 18. rupees a quintal (100 kilograms) and the coarse variety 24 rupees a quintal. :
Yesterday' s Hindustan Times Bombay dispatch reported: "Prices of consumer goods, particularly tinned foods, were 30 to 40 percent higher in’ Calcutta." Large departmental. stores stayed shut, while others refused to sell’ foods like oats. Shops dealing .in motor car accessories and spares did practically no business.
The Patriot reported yesterday that the prices of imported items went up sharply and the stock-exchange authorities in Delhi were forced to suspend business. Stocks’ of radios, watches and other imported goods have gone underground or were quoted at higher prices.
It said that although trading activity ‘in the bullion market came almost to a standstill as sellers had completely disappeared
from the market, prices of gold and ‘silver, Spurted to new heights on account of a "rush of buyers.
Yesterday's Hindustan Times in a Bombay dispatch reported that unofficial prices of the pound sterling and American dollar rose to new high levels on June 6 as a result of the devaluation of the rupee. Pound sterling, so-far available: ‘unofficially for 27 rupees | ‘and 30 rupees each, was being quoted on June’6 at 40 rupeés, ; while an American dollar, available unofficially for 12 to 15 rupees, went up to 17 to 20 rupeés. The-gold price in Bombay also shot up to a record level of 160 rupeés per 10 grams: of primary gold while it was quoted at 134 rupees on June 4.
The Financial Express in its editorial has expressed strong dissatisfaction about the devaluation. It ‘said that: by devaluing the rupee,.the Indian government had "not only admitted its incompetence to manage the economy but also endorsed the :verdict of . smugglers, black marketeers end currency racketeers onthe true value of: the rupee." afin oles
NTE: implies helplessness of a borrower: on the verge of bankrupteys" it: said. : 7 Sih.
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