January 13, 2011 8:44 PM

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Centre announces several steps to tame rising prices; To review import & export of essential items

The government has announced a number of steps to reign in specially the food inflation. They include:’ Review of import and export of all essential items on a regular basis.’ Imposing controls on exports, easing imports restrictions, including tariff reduction wherever necessary to improve domestic supplies.’ States to be urged to consider waiving mandi tax, octroi and other local levies, which obstruct smooth movement of essential commodities, and reducing commission agent charges.’ A scheme to support the state governments in setting up of farmers' mandis and mobile bazaars and to improve the functioning of civil supplies corporations and cooperatives to be finalised urgently.’ Apart from strengthening the public distribution system, the states will be asked to consider exempting horticultural products from the purview of Agricultural Produce Market Committee (APMC) to remove bottlenecks in this sector. The government will also take stringent action against hoarders and black marketers manipulating market prices to ensure that products reach markets in a timely manner and prices are moderate.’ An Inter-Ministerial Group set up under Chief Economic to review the overall inflation situation particularly the primary food articles.The announcement of the measures follows a meeting convened by the Prime Minister Dr. Manmohan Singh on Tuesday in the wake of food inflation crossing the 18 per cent mark with the prices of several food items registering sharp increase specially the Onions.With regard to onions whose prices had soared to 80 rupees a kg , it said that NAFED and NCCF will undertake the sale of the commodity at 35 rupees a kg from their outlets. It says that the arrival of onions from Pakistan will help cool the prices saying that import of 1000 tonnes of onions has already been contracted.A statement by the media advisor to the Prime Minister said that the Committee of Secretaries under the Cabinet Secretary will review the price situation with individual states and advise the departments concerned to maintain close coordination with state agencies so that suitable actions whenever necessary can be taken on a fast track.The statement says that the government is closely monitoring the situation and is committed to contain the impact of inflationary pressure on the common man. It also says that the lasting solution to food price inflation lies in increase in agriculture productivity and the government has taken up several important steps in this direction.

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