Sharing the burden of war costs: Government to share with Indian companies

NEW DELHI: “When things go well, you pocket all the profits, but when things go south, you immediately pass on the costs. Sharing a little burden may not be a bad thing for you” – the purported remarks of a senior government official have sent ripples in government circles. The official allegedly made the observation during a recent interaction with some industry representatives, who informed him about rising raw material costs due to conflicts in West Asia. While empathizing with them and assuring them of all possible support from the government, the official suggested that the industry could absorb some of the increase in material costs instead of passing it all on to consumers. Ministries and departments, after receiving input from industry about shortages or unavailability of critical materials, have been discussing the issues with relevant agencies and “higher levels” to find solutions. The government has set up seven Empowered Groups of Secretaries (EGoS) to regularly review potential disruptions to trade, supply chains and logistics. These countries have also been taking mitigation measures and monitoring domestic supply and price stability of essential commodities. Meanwhile, at a PMO meeting held on Wednesday evening, EGoS members shared steps taken so far and issues faced, officials said. These were discussed at length, they said. One of the issues dominating discussions was the supply of food, milk and pharmaceutical packaging materials, affected by disruptions to ethylene and propylene supplies.