Basu panel to review inflation
Jan. 13: With the Prime Minister, Dr Manmohan Singh chairing meetings to review price rise since Wednesday, the government also announced the formation of an inter-ministerial group headed by the chief economic adviser, Mr Kaushik Basu.
The Basu panel has been entrusted with reviewing the overall inflation situation with particular reference to primary food articles. Apart from this, the group will also be reviewing production and rainfall trends and building an institutional machinery to read warning signals, assess international trends, and recommend action.
The Centre also plans to urge the states to consider waiving local levies and to reduce agent charges. Cartelisation by large traders will be strictly dealt with.
Public sector undertakings shall intensify purchases of essential commodities, particularly edible oils and pulses, for distribution through their retail network and also through the PDS of state governments. The existing schemes for subsidised distribution of edible oils and pulses will be continued. Exports of edible oils and pulses, as well as non-basmati rice, will remain banned, said the government.
Special initiatives will be taken to involve residents’ welfare associations and self-help groups in distribution of essential commodities to address local shortages.
A scheme to support state governments in setting up farmers’ mandis and mobile bazaars has been mooted. The existing PDS will be suitably strengthened through computerisation and other steps, including opening more procurement windows across the country.
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