CWC backs off on UP, targets Chidambaramover price rise

The Congress Working Committee (CWC) today renewed its demand for a ban on forward trading in foodgrain and other essential commodities.

It, however, backtracked on the imposition of President's rule in Uttar Pradesh saying it was for the government to take a decision.

Inflation dominated the CWC meeting this evening as leaders of the ruling party asked pointed questions on price rise from Finance Minister P Chidambaram.

Chidambaram listed the measures taken by the government to check inflation. However, dissatisfied CWC members asked why the government was reluctant to ban forward trading in essential commodities, sources who attended the meeting said. Chidambaram said this was for the Cabinet to decide.

To control volatility in prices of wheat, sugar and pulses in the futures market, the Forward Market Commission had taken measures like imposition of limits on open position, reduction of limits on daily price fluctuations and imposition of additional/special margins, he added.

On price rise, the CWC members wanted incentives to farmers to grow pulses and vegetables, strengthening of the public distribution system, and tighter money supply.

On UP, AICC General Secretary Janardan Dwivedi said the CWC was of the opinion that it was "morally" wrong for the Mulayam Singh Yadav government to continue.

"A decision has to be taken in consultation with all partners and allies," said Dwivedi, adding that the CWC had left the decision to the government.