Restore subsidy: Cong to govt

Increase in prices of wheat, rice will be a harsh burden on the people: Congress

Under pressure from the Left and other constituents of the United Progressive Alliance (UPA) like the DMK, the Congress today asked the Manmohan Singh-led government to reconsider its decision to increase the price of wheat and rice under the public distribution system (PDS) for the above poverty line (APL) people saying it would impose a major burden on the already "over-burdened" lot.

"The decision is too harsh even for the APL families, especially the women, who are struggling to meet the household burden when prices of various items are on the rise," Congress spokesperson Jayanthi Natarajan said.

The AICC spokesperson said the ruling party understood and appreciated the government's steps towards fiscal prudence, but the increase in the prices of wheat and rice "will be a harsh burden on the people". Natarajan said, "We want the government to review the decision. Take a new look at the decision to raise the prices."

The Left parties have already demanded reversal of the government's decision to cut food subsidy by Rs 4,524 crore by reducing the quantity of wheat and rice issued through the PDS and other government schemes for the below poverty line (BPL) consumers.

CPI leader D Raja told Business Standard that the Left parties would raise the issue in the UPA-Left co-ordination committee meeting, scheduled for January 12.

The CPI (M) had earlier termed the move as "retrograde". DMK chief M Karunanidhi has also written to UPA Chairperson Sonia Gandhi and Prime Minister Manmohan Singh demanding a rollback of the government decision.

Earlier, the Congress-led government in Kerala argued that the reduction in subsidy on grain would affect the common man adversely and that the state would be badly hit as many were dependent on the PDS.

This was put across by Kerala Chief Minister Oommen Chandy when he met the UPA chairperson here today.

"The decision to reduce the subsidy will affect common man adversely. Kerala will be one of the badly affected states as majority of the people are dependent on the PDS," state Congress chief Ramesh Chennithala, who was also present during the 30-minute meeting, said.

Meanwhile, Tamil Nadu Chief Minister J Jayalalithaa today charged Karunanidhi with "adopting double standards" on the food subsidy cut issue. "Where were the DMK ministers when the Cabinet committee on economic affairs met to decide on the subsidy cut? Was the decision taken without their knowledge? Did not they agree to the subsidy cut in the meeting?," she said in a statement in Chennai.

"After knowing about the Cabinet decision, Karunanidhi is writing a letter to the prime minister seeking a rollback," she said and asked what sort of "funny political drama" was he trying to enact.

Instead of nipping it in the bud, Karunanidhi demanded the prices be rolled back after the Centre announced its decision on the subsidy cut, she said. "It is like locking the stable after the horses have bolted," she said.

The UPA government, of which the DMK is a constituent, was attacking the common man by taking such steps as hiking the prices of petroleum products and subsidy cut on food grains and Karunanidhi wanted to prove his innocence by issuing statements, she said. "People are watching his actions and will teach a fitting lesson at an appropriate time," she said.