New Delhi, February 6
The Centre today decided to set up a committee of chief ministers and Central ministers to suggest ways to deal with price rise and improve the public distribution system (PDS).

Prime Minister Manmohan Singh addresses the conference of Chief Ministers on price rise in New Delhi on Saturday. — PTI Photo

The panel will include CMs of Andhra Pradesh, Assam, Bihar, West Bengal, Punjab, Haryana, Gujarat. Tamil Nadu, Madhya Pradesh and Chhattisgarh. Finance Minister Pranab Mukherjee, Food and Agriculture Minister Sharad Pawar and Planning Commission Deputy Chairman Montek Singh Ahluwalia are the other members.

Gujarat CM Narendra Modi, who was the most vocal among non-Congress state heads in his criticism of the UPA Government, has been included in the high-level Central committee that was announced after the daylong deliberations of CMs with the Prime Minister Manmohan Singh to tackle rising prices of food and essential commodities.

By constituting the committee, the PM has ensured that the states ruled by the Opposition parties share the responsibility in planning a strategy to boost food grain production and stabilise the food prices.

Except for AP, Assam, Haryana and Tamil Nadu, the remaining six states in the committee have non-Congress governments.

The food prices would stabilise soon but the states need to do their bit, said the PM during the meeting. He sent out a tough message warning hoarders of strict action under the Essential Commodities Act. He said the country’s PDS was hopelessly outdated and needed complete overhaul.

Asking states to forgo VAT on sugar, he said the role of states in the rise of sugar prices needs to be assessed. “As far as sugar is concerned, the role of states is important. States should also ensure that inflation is controlled and that supplies by the Centre should reach all beneficiaries,” said Manmohan Singh.

As expected non-Congress states passed the buck, blaming “faulty” policies of the Centre for the inflation. Chief Ministers of Chhattisgarh, Orissa and West Bengal slammed the Centre for putting onus of controlling price rise on states and questioned steps being taken by the UPA Government. Leading the group was Narendra Modi. The meeting also saw Pranab Mukherjee and Modi spar over the issue. Modi alleged that the Centre had not fulfilled its poll promise of providing wheat and rice at concessional rates.

After the daylong deliberations, it was decided to constitute a core group to suggest ways to reduce prices and give relief to vulnerable sections of the society. Announcing the decision, the government said it had large stocks of wheat and rice which it would utilise to ensure supplies to the PDS.

The group will mainly deliberate on and recommend measures to increase agricultural production and productivity, including long-term policies for sustained agricultural growth, reducing the gap between farm-gate prices and retail prices and better implementation of and amendment to Essential Commodities Act.

Besides, the committee will also devise ways to ensure better and effective delivery of essential commodities to the vulnerable sections of society, augmentation of warehousing and storage capacity, including cold chains, and issues relating to inputs like seeds and fertilisers.

It was recognised that the prime concern of governments was insulation of the poor and the vulnerable from adverse price movements.

Deliberations also focused on short-term measures and long-term strategies to ensure food security by increasing production so as to meet the demand.

It was noted that the wide gap between the crop yields obtained in front line demonstrations on the farmers fields and the average yields at farmers’ field is in almost all states and the inter-state differences in the yield gap can be bridged by proper implementation and monitoring of the Central and state government schemes.

Reasons for the price rise were identified as being due to hikes in MSP, supply constraints of certain commodities, increase in the international prices, increase in demand on account of increase in the purchasing power, more liquidity in the system, in addition to inefficiencies in agricultural marketing and the high cost of intermediation.

It was acknowledged that the increase in prices due to hike in the MSP was desirable as it translated into higher production, procurement and domestic stocks of wheat and rice. The highest ever procurement since Independence, has led to a comfortable stock position and no shortage of food grains in the country, the government claimed. 

Sops assured to Punjab, Haryana

New Delhi: Prime Minister Manmohan Singh today assured greater incentives to Punjab and Haryana as a token of their efforts to augment food production in their respective states. Singh assured that the Centre “will not be found wanting in its support” to these governments.

Recalling the efforts of the two states to keep up food production despite a huge drought, the Prime Minister said, “I am aware that in doing so, their (Punjab and Haryana) finances were hugely strained, I assure them our support.” Due to scanty rainfall, the cost of cultivation in these two states shot up between Rs 2,000 and Rs 2,500 per acre.

Thereafter, Punjab Chief Minister Parkash Singh Badal sought a compensation of Rs 2,000 per acre to the distressed farmers, who incurred additional expenditure. Haryana Chief Minister Bhupinder Singh Hooda, too, asked for Rs 1,000 per acre as additional relief package from the Centre to compensate farmers.

Hooda wants sops for cane growers
Tribune News Service

New Delhi, February 6
Haryana Chief Minister Bhupinder Singh Hooda has demanded “some more incentives” for sugarcane farmers to enthuse them and augment the country’s sugar requirement. Hooda said the Centre and states should tackle the problems of rising prices jointly. “We will not be able to effectively deal with the price situation unless we increase production of essential commodities,” he said at the CMs’ conference, called by the PM in New Delhi today.