Price control steps will be intensified: FM

Admitting that prices of essential commodities like pulses and edible oils have hardened since the last one year affecting the common man, the government today said measures already initiated will be further intensified to ease the situation.

Finance Minister P Chidambaram said that a two-pronged strategy has been adopted to tackle inflation both in the short term and in the long term.

The government has taken a slew of measures like cutting excise and customs duties on various commodities to ease the situation immediately while the monetory policy initiatives taken by the RBI will take some time to show impact.

On correcting the supply-demand mismatch of essential goods, he said supply can be augmented either by way of increased procurement within the domestic market or through imports. "I hope the agriculture minister will take a decision in this regard," he said in Lok Sabha while replying to questions on price rise.

"Whatever way it is done, it will have full support of the government," Chidambaram said.

He denied that Public Distribution System (PDS) was not used effectively to check the price rise saying the system has been strengthened and wheat, sugar, paddy and kerosene oil are being supplied continuously.

On the question of adding pulses in PDS, the minister cautioned that it has to be considered "very carefully" in view of the deficit in the country.