The soaring prices in the oil and commodity has caused the inflation which has been high and hence India has asked for stabilizing. The G-20 meeting India had requested the G-20 members for evolving a mechanism to control the stabilizing the volatile price in commodities. The known way to bring down the soaring prices is to boost the output with the help of the better technology and other factors.
In the meeting of the G-20 Pranab mukerjee the Indian finance minster asked for competition among producers and further information. A meeting of the G-20 took place between the finance minsters of G-20 countries and the governors of the central banks where they spoke about commodity prices. The volatility has been emanates from the countries which are developed and has been then quoted as benchmarks and that has created problems for emerging markets. The major concern for the emerging markets in the Asian countries and has been a major importer of the commodities in case of energy.
The price signals has been suppressed by the excessive volatility rate and the equilateral the demand of many of the emerging nations. A consensus needs to be developed by G-20 while dealing with the commodity price and help it in a sustainable growth having a strong basis. In spite of the double digit inflation happening in countries like India it is importing crude oil about 80% due to the oil needs. There is a need of a sustainable energy security for the poor people and hence the need to reduce the subsidies which are inefficient.
The subsidies are in case of the fossil fuels like LPG and in Kerosene which are used for domestic uses cannot be phased out in future.