The Prime Minister has expressed confidence that food prices will stabilise soon saying the worst is over. Addressing a meeting of the Chief Ministers in New Delhi on Saturday, Dr Manmohan Singh said that the government has acted on several fronts to check the prices. He said steps were taken to augment the Kharif output and the foodgrain production could be contained to a large extent. This is reflected in the procurement of paddy so far. He said, Rabi prospects are also encouraging and the post monsoon rains have been good. This augurs well for the ability to stabilise prices at a reasonable level. The Prime Minister also said that the country has adequate food stocks of rice and wheat in central pool to maintain food security.<br/><br/> While calling upon the States to work together with the Centre to bring prices under control, the Prime Minister said the States must ensure that food articles released by the Centre quickly reach the intended beneficiaries. Regretting that the Public distribution system is hopelessly outdated, the Prime Minister said it needs to be overhauled. He said States should focus attention on the development of the market intervention mechanism which can supplement the public Distribution system. States should also use their power under the Essential Commodities Act to prevent creation of artificial scarcity. <br/><br/> Dr Singh regretted that the lifting of wheat and rice by the states under the open market sale scheme has not been encouraging in most States. On the wide difference between the retail and the farm gate prices, the Prime Minister said greater competition is needed to take a firm view on opening up the retail trade. He said that proliferation of state and local taxes lead to ten to fifteen per cent additional cost burden at the retail level and this need to be addressed.<br/><br/> At the outset, Prime Minister said that despite the global meltdown, India has only seen modest deceleration. While the growth rate in 2008-09 was 6.7 percent, it is likely to be 7.5 percent in the current fiscal. While admitting that the government has been less successful on the food inflation front, Dr. Singh said that it has been able to protect the inclusiveness of the growth process.