Concerned over the continued surge in prices of food items, Prime Minister Manmohan Singh has called a meeting with state chief ministers tomorrow to formulate strategies to combat inflation.
Singh, in his meeting with chief ministers, will discuss food price situation and review implementation of the Essential Commodities Act to check hoarding of food items. Prices of food items like sugar, pulses and rice have seen a sharp rise after the monsoon failed last year.
India’s annual food inflation based on wholesale prices rose to 17.56 per cent for the week ended January 23. The rising prices have prompted the government to take measures like withdrawal of import duty on sugar, augmenting import of pulses and releasing more wheat and rice in the open market.
The meeting follows Congress Working Committee (CWC) deliberations today on price rise, during which party members are believed to have expressed concern over surging inflation and suggested that government should take steps to contain it.
Earlier in the week, the prime minister had discussed the issue with the state chief secretaries and impressed upon them the need to improve the public distribution system and increase farm productivity. “There are many instruments at your command and it is expected that you should not be found wanting in their judicious use. On behalf of the Central government, I would take this opportunity to reaffirm our commitment to assist states in every way we can in all these and other areas,” Singh told the chief secretaries.
He is also likely to ask states to fully utilise their allocations of cereals under the public distribution system, as well as the open market sale scheme. Driven by rising prices of pulses and vegetables, food inflation soared to a decade’s high of about 20 per cent in December. The wholesale price-based general inflation crossed 7 per cent in December, from sub-zero level last year, and is estimated to climb to 8.5 per cent by March.
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While identifying prices of pulses, sugar, potato and onion as major areas of concern, the Cabinet Committee on Prices (CCP) on January 21 made an ad hoc allocation of 10 kg of foodgrain per month to all ration card holders over and above the existing quota.
CPP also suggested that state governments should play a more active role in containing prices through effective dehoarding operations and use official agencies like the State Civil Supplies Corporations to distribute articles directly to consumers.