ID :
74364
Sat, 08/08/2009 - 21:51
Auther :

Govt convenes meeting of CMs to address price situation

New Delhi, Aug 7 (PTI) Acknowledging that the situation
regarding prices of food items is serious, the government
on Friday said it was taking long and short term measures and
Prime Minister of India Manmohan Singh will soon convene a
meeting of Chief Ministers to address the problem.

Singh will probably meet the Chief Ministers on August
17 to specifically focus on measures to curb hoarding in the
backdrop of reports of blackmarketing because of shortage of
supplies, Union Agriculture Minister Sharad Pawar said, while
replying to debate on price rise in the Lok Sabha (Lower House
of Indian Parliament).

Dissatisfied with the reply, Opposition National
Democratic Alliance (NDA) and Left Parties staged a walkout in
the House.

"The situation is serious... The government has taken the
entire situation very seriously," Pawar said as he outlined
the steps that the government has taken and was contemplating
to deal with the problem that had been aggravated by poor
monsoon.

He said the government was ready to raise subsidy and
import food items, especially pulses to bridge the
demand-supply gap.

"We will also try to tell them (Chief Ministers) that
every state has to take very deterrent and effective action
against all hoarders", he added.

The government, the Minister said, has also convened a
meeting of state chief secretaries tomorrow to discuss the
issue of rising prices and the steps being taken to control
hoarders and blackmarketeers.

The Centre has asked all states to take action against
hoarders under the Essential Commodities Act, Pawar said,
adding four states have detained 162 traders, while 13 states
have issued orders on stock limits of food items.

Noting that poor people are bearing the brunt of price
rise, the Minister particularly referred to the high cost of
pulses saying that they have gone out of reach of the lower
strata of society.

Referring to shortage of pulses in the country, the
Minister said production of pulses has stagnated in the
country, while the demand has gone up, resulting in a gap of
3.5 to 4 million tonnes.

The shortage was quite marked in case of tur, moong
and urad, he said, adding the public sector entities and
private enterprises have already imported 9.30 lakh tonnes of
pulses to meet the demand.

Denying the allegations that consignments of pulses were
rotting at ports, Pawar said, four state-owned trading firms,
STC, Nafed, MMTC and PEC, Ministry of Shipping and Pulses
Importer Association wrote to him that there was no truth in
such reports.

He added that a 6,000-tonne consignment of pulses
belonging to Nafed was released by customs authorities.

After the reply, Leader of Opposition L K Advani said
price rise was affecting the common man whose interest the
United Progressive Alliance (UPA) had promised to protect.

He said the House was not satisfied by Pawar's reply and
in protest led an NDA walkout.

Taking a swipe at UPA, Advani said it had won the mandate
to protect the interest of 'Aam Admi' (common man), but "Aam
Admi is sad".

On Pawar's contention that government has taken a slew of
measures to check prices, the BJP leader asked, "Then why have
the prices risen?"

Rashtriya Janata Dal (RJD) leader Lalu Prasad, Samajwadi
Party (SP) chief Mulayam Singh Yadav and Communist Party of
India-Marxist (CPI-M) leader Basudeb Acharia continuously
interrupted Pawar during his reply raising questions with
regard to rise in prices of items like vegetables, pulses and
sugar.

Pawar in his reply maintained that the government was not
ignoring the situation, but insisted that "new factors" like
increase in income, climate change, high energy prices,
globalisation and urbanisation were impacting costs.

"There have been changes in the world, which are having
impact on India too", he added.

On steps to contain rising prices of sugar, the Minister
said, 29 lakh tonne of raw sugar has been imported by private
traders on suggestion by the government and situation should
improve when it reaches the market after processing.

The importers, he said, have been asked to ensure that
this quantity of refined sugar reaches market within three
months of import, failing which the government would
confiscate the stocks and release it through the public
distribution system.

Referring to the demand of Chattisgarh for raising
Minimum Support Price (MSP) for common variety of paddy to Rs
1,186 per quintal, Pawar said, this would have adverse
implications of consumer.

"We cannot ignore consumers. We have to keep a balance
between the interest of farmers and consumers", he added.

On the demand of Kerala for additional rice and wheat
for Onam festival, Pawar said, the centre would supply these
items at a price which is paid to farmers.

"We will not charge the transportation and storage cost
from the states" for additional supplies, the Minister said.
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