Amidst spiraling prices of essential commodities and food inflation touching a one-year high of 18.32 per cent for the week ended December 25 last year, Union finance minister Pranab Mukherjee has called upon the state Chief Ministers to invoke the provisions of Essential Commodities Act to rein in hoarders to mitigate the impact of escalating prices.
He also urged the state Chief Ministers to improve the public Distribution System (PDS) so that food grains and other important food items can be supplied to the poor people, especially the BPL (Below Poverty Line) at subsidized prices.
“I have written to the state Chief Ministers to use the powers vested with them in the Essential Commodities Act to take action against the hoarders and also improve the PDS so that essential food items can be supplied to the poor and the BPL families at subsidized rates”, he told newspersons after delivering the 10th Foundation Day Lecture of National Aluminium Company (Nalco).
Mukherjee admitted that rising food prices was a matter of deep concern but pointed out that it was impossible to insulate the country’s economy completely from the impact of the rising prices of crude oil in the global market.
Asked on measures taken by the government to combat food inflation, he said, “The government has taken measures both on demand and supply side to contain food inflation. We have allowed the import of essential food commodities at zero duty.”
Earlier delivering the Nalco Foundation Day Lecture, Mukherjee said, “One of the biggest challenges before our nation today is to find the correct balance between the need for economic growth, sustainability of our resources and the opportunities that need to be created for bringing people such as those in the tribal belts into the mainstream of the development process. It was with such considerations in our mind that the Eleventh Plan endorsed a need for inclusive growth to ensure equality of opportunity for all.”
“To fulfill our commitment of inclusive growth, the spending on social sector has been rapidly increased and is now at 37 per cent of the Total Plan for 2011-12 which stands at Rs 3.73 lakh crore. Another 25 per cent of the Plan allocations are devoted to the development of rural infrastructure,” he added.
Commenting on India’s GDP growth, he said, “The GDP growth in the first half of 2010-11 has touched 8.9 per cent after an average of seven per cent in the last two years. We expect the economy to sustain this growth momentum in the last two quarters as well. The fiscal deficit has been projected at 5.5 per cent of the GDP in 2010-11 and 4.8 per cent by the end of 2011-12. Every year, we are bringing down the fiscal deficit by 0.7 per cent in line with the recommendations of the 13th Finance Commission.”