Price rise to be checked in 3 weeks: FM

Prices of essential commodities will be brought under control in the next two to three weeks, Finance Minister P Chidambaram assured the Congress Working Committee, which met here today to discuss the price rise.

The CWC urged the government to work out "an effective mechanism" to manage the demand and supply of essential commodities, even as it appreciated the measures already taken by the government to reduce the impact of high prices.

Although the CWC expressed "deep concern" for the plight of common man due to price rise, the three-hour long meeting was marked by mutual appreciation and respect, with the Congress leaders expressing satisfaction with the steps taken by the government and Prime Minister Manmohan Singh and the FM assuring them about the government's seriousness to tackle the problem.

Ministry of Food headed by Sharad Pawar, however, came in for sharp criticism from some CWC members after the FM informed them that over-estimation about the procurement of wheat by the food secretary was one of the reasons for the rise in its price, according to CWC sources.

He attributed the steep hike in the prices of pulses to the shortage of supply and said that the prices of vegetables varied in different parts of the country. Congress President Sonia Gandhi urged the PM and the FM to find some ways to bring relief to the people.

At the meeting, the FM gave a three-page note on the steps taken by the government. He said that the state governments had been asked to launch an operation against hoarding under the Essential Commodities Act, even as the Government of India had decided to import wheat, sugar and pulses.

Senior Congress leader Digvijay Singh, however, sounded a discordant note saying that the government was not able to procure from farmers because private companies were offering more than the minimum support price.

In the press briefing later, Defence Minister Pranab Mukherjee scotched all suggestions and speculation about the Congress party being dissatisfied with the steps taken by the government to control prices.

While the government is importing wheat, sugar and pulses, it has reduced credit on forward trading and on wheat and pulses. "Thus steps have been taken on both supply and demand side," he said.

In the 1970s, the rate of inflation had reached 24 per cent. When Indira Gandhi took over from Charan Singh, the rate was 18 per cent. At the time of VP Singh and Chandrashekhar governments, rate of inflation was 16 per cent.

"But the Congress governments always managed. Congress governments know how to control prices," said Mukherjee.