‘States must revamp PDS’

Aug 06, 2010 - Age Correspondent |

New Delhi

Stating that the Centre had done whatever was possible to blunt inflation, Union finance minister Pranab Mukherjee on Thursday demanded a partnership of state governments in controlling price rise. Replying to a debate on inflation in the Rajya Sabha he said that states need to revamp the public distribution system and act against hoarders to check prices.

He said the government’s efforts have brought down food inflation from 21 per cent in December to 9.55 per cent now even though shortage of pulses and edible oil, in tandem with hardening of international prices, had compounded the situation.
The finance minister clarified that he was not passing the buck to the states for controlling surging prices, but most areas that could help in effectively dealing with controlling inflation like PDS and enforcing the Essential Commodities Act lay with them. “I shudder to think of a central mechanism to control the distribution system in over six lakh villages,” he said. He said revamping the PDS is primarily a responsibility of states and has to be done by them. “The power to enforce the Essential Commodities Act is with the state government,” he added. The finance minister rubbished the Opposition charge that the government was insensitive to the plight of the poor.
However, despite the reply of the finance minister, the House adopted a resolution asking the government to take more steps to control inflation. Mr Mukherjee said despite the government exempting pulses and crude edible oils from customs duty, their supply could not increase much because private players did not find landed prices to be as remunerative. On the monetary front, Mr Mukherjee said the RBI was monitoring the demand factors that fuel inflation and will adjust rates, if found necessary.
The finance minister stated that he did not want to repeat the incident of 1991, when India had to pledge gold for a few million dollars and the then Indian finance minister had to wait at the doors of a finance minister of the rich country to take his appointment.

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