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Centre asks States to check price rise

Updated: Jul 04, 2014 05:05:29pm
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New Delhi, Jul 4 (KNN)  Notwithstanding the record production of agricultural commodities, there is an increase in prices of food items which remains a matter of concern said Finance Minister, Arun Jaitley today, pointing to the fact that there was hoarding at some level.

Inaugurating State Food Ministers Conference on Price Control Measures here, Jaitley asked States to chalk out a plan to check price rice.
 
We have to take all steps to ensure availability of these commodities at reasonable prices,” he said, adding that some system would have to be evolved to anticipate such rise and plan actions in advance. He expressed the hope that a joint action plan will be chalked out by the Conference, according to an official release.

On the other hand, Union Minister for Consumer Affairs, Food and Public Distribution, Ramvilas Paswan, said there is need to put in place a preventive strategy to minimise the adverse impact of various factors including late monsoon on the prices and availability of essential food items.
 
“We have to be well prepared with an advance co-ordinated strategy in collaboration with all the State Governments,” he said.

Expressing concern over reported hoarding, Paswan said that tough action is required by the States against those indulging in illegal hoarding and black marketing.
 
Setting up of fast track courts for handling cases of hoarding and black marketing should be considered. While improving agricultural productivity is crucial for increasing the overall availability of essential food items, removal of any restrictions on their free movement to the final consumer are equally important for checking any undue speculative activities leading to hike in prices, he said.
 
He admitted that it was a battle which has to be fought jointly by the Centre and the State Government, calling for strong commitment to ensure both availability and price stability.
 
He highlighted some of the anti-inflationary initiatives by the government such as raising the Minimum Export Price (MEP) for Onion and Potatoes, release of additional stocks of Rice through the Public Distribution System (PDS), ensuring only marginal increase in procurement prices this year, etc.
 
The implementation of the National Food Security Act which covers 75 per cent of the rural and 50 per cent of the urban poor for receiving highly subsidised food grains may also be one of the anti-inflationary initiatives, he said, requesting the States to implement the Act at the earliest.

Meanwhile, Agriculture Minister, Radha Mohan Singh said that artificial shortage created by hoarders is responsible for increase in prices of some of the food items.
There is need to improve supply chains and storage facilities for smooth supply of perishable commodities such fruits and vegetables, Singh said, even as he asserted that there is urgent need for market integration, improved market infrastructure and better market information.
 
Minister of State for Consumer Affairs, Food and Public Distribution, Raosaheb Dadarao Danve has also asked the states to work proactively to check price increase of food items.

The conference of the State Food and Consumer Affairs Ministers is being attended by more than 25 States Governments and senior officials of various Central Ministries.  (KNN/ES)

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