"The Prime Minister has already written to all Chief Ministers on the de-hoarding drive and steps will be taken to bridge the gap between wholesale prices and retail prices to curtail artificial shortage of products in the market," he told reporters here.
Urging industrialists to cooperate in arresting prices, he said the government is empowered by law to take strict action under the Essential Commodities Act and Industrial Development Regulation Act to take steps and forcibly regulate prices.
"We don't want to encourage Inspector Raj, but if needed, we will go for every thing to control the price rise," the minister warned. He, however, said that so far the industry has shown a positive approach to the government efforts to reduce inflation.
Inflation is at a 42-month high of 7.61 per cent and the government has been taking fiscal and administrative measures to check the price rise. It has already cut import duty on edible oils and banned export of non-basmati rice and cement, besides suspending futures trading in gram, rubber, soyoil and potato.
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On steel and cement prices, which have been feeding inflation, he said Prime Minister Manmohan Singh himself met steel and cement firms, which ensured steep reduction in prices. He exuded confidence that within a few weeks the inflation would also witness a sizable decline.
Asked whether the issue of price rise would have any negative impact on electoral prospects of the Congress in the forthcoming parliamentary election, Kumar said "as the price rise will be brought under control within few weeks, where is the question of adverse impact on the electoral prospects of ruling alliance?"
He ruled out any possibility of early election and said that general elections would be held when it was due.