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LATEST NEWS UPDATES | 'Network of retail cooperatives may help tame food inflation' -Siddharta & Surojit Gupta

'Network of retail cooperatives may help tame food inflation' -Siddharta & Surojit Gupta

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published Published on Jan 4, 2014   modified Modified on Jan 4, 2014
-The Economic Times


NEW DELHI: The government's key policymakers are drawing up plans to tackle the problem of stubborn food prices and may rope in cooperative entities to set up standalone stores to sell vegetables and other food products across the country.

The race to tackle the inflation problem, identified as one of the factors for the rout of the Congress in the recent state elections, has gathered momentum in the run-up to the 2014 national polls. Double digit food inflation and spiralling prices of vegetables have hurt households across the spectrum and triggered anger and unease among voters.

C Rangarajan, who heads the Economic Advisory Council to the Prime minister, has floated the idea of a "government organized initiative" involving the cooperative sector and states to ease the pain of high food prices. "We should create a network of retail outlets in our country and these networks should focus on a limited number of commodities. I think that will have a salutary effect on the market prices," Rangarajan told TOI. 'The cooperative institution is the most ideal for it. And what we should focus on is not cooperative retail outlets catering to a very large number of commodities... I think that is not what is required. Actually the focus has to be on perishables, certain kinds of grain, certain kinds of dal," he added.


The Economic Times, 3 January, 2014, http://economictimes.indiatimes.com/news/economy/policy/network-of-retail-cooperatives-may-help-tame-food-inflation/articleshow/28320676.cms


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