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न्यूज क्लिपिंग्स् | Govt gets cracking on curbing prices

Govt gets cracking on curbing prices

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published Published on Jan 14, 2010   modified Modified on Jan 14, 2010

Hit by soaring food inflation, the government moved into urgent damage control mode on Wednesday, with Prime Minister Manmohan Singh stepping into the frame and deciding to meet chief ministers to urge stronger anti-hoarding measures and improved lifting and distribution of foodgrains.

The Centre plans to quickly release 2-3 million tonnes of wheat and rice in the retail market, using its own agencies like NAFED and NCCF besides PDS outlets. This stock will cost more than PDS grain, but will help cool retail rates. Subsidies under a scheme for cheaper edible oil may be increased too.

The prime minister is expected to meet chief ministers around January 27 and his involvement in resolving the price rise tangle is an indication of the level of concern in the government.

PM Manmohan Singh has personally intervened in the fight against price rise. He is expected to call for tough steps against speculators and review the foodgrain release system as some states are not using their foodgrain quotas.

Agriculture minister Sharad Pawar — who has drawn much of the flak for price rise — faced the media after a meeting of the Cabinet Committee on Prices on Wednesday and expressed confidence that prices would begin to moderate within a week to 10 days. But he also pointed to the sharp escalation between the wholesale mandis and retailers. “In Delhi itself, potatoes are a little under Rs 5 a kg but cost Rs 11 a kg at sale points,” he said. Similar was the case with onions, dals and groundnut oil, he said.

With regard to sugar prices, which sent the government into a tizzy as they approached Rs 50 a kg, the government has decided to allow UP millers to process imported raw sugar outside the state. This would get around UP chief minister Mayawati’s objection to mills in the state — that hold most of the imported raw sugar — processing the product.
With the ruling coalition feeling the political heat, the CCP chaired by the PM considered a set of options shortlisted by PMO.

On pulses, another food item that has become dearer, Pawar told reporters after the CCP meeting that state governments were urged to make use of a scheme to distribute imported pulses at a subsidy of Rs 10 a kg. Public sector trading agencies had been asked to tap all possible sources to import pulses which were proving out of reach for the aam aadmi.

States are being urged to waive VAT and other taxes as has been done by Delhi.

 

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