M A I N   N E W S

Govt reviewing price hike

NEW DELHI, March 12 (UNI) — In an obvious buckling under pressure, the Centre is reviewing its Budget proposals which hiked the price of foodgrains for those below poverty line (BPL).

Sources said though the government was inclined to consider reduction in the prices of wheat and rice supplied through the public distribution system (PDS), it might ultimately reduce prices of fertilisers as well due to formidable pressure not only from the Opposition but also from the NDA parties, especially the Telugu Desam and INLD.

Raising the price of urea by Rs 600 per tonne and increasing the cost of foodgrains by 68 per cent for BPL families under the targeted public distribution scheme (TPDS) has earned the ire of coalition allies led by the Telugu Desam, the JD (United), the Trinamool Congress, the Samata and the DMK parties whose representatives have met Prime Minister Atal Behari Vajpayee seeking a review of the hike.

Notwithstanding Finance Minister Yashwant Sinha’s announcement ruling out reduction of the prices, authorities are working out the price reduction scheme. The government’s insistence that BPL families would receive double the quantity of foodgrains at 50 per cent of the costs have not found any takers.

The Budget proposals have doubled the quantity of wheat and rice for BPL families to 20 kg. The government’s claim that each family would benefit by Rs 60 a month has not found favour with these partners. They also argue that the quantity was doubled only to palm off decaying stocks in the godowns of FCI.

The allies have submitted a memorandum seeking reversal of the hike and given sufficient warning though stopping short of threatening a cut motion.