"The worst is over as far as food inflation is concerned," Singh said in a conference of Chief Ministers, which was held to discussed the soaring food prices.
Warning hoarders of strict action under the Essential Commodities Act, PM advised on the overhauling of the food distribution system.
"Food distribution system is hopelessly outdated and needs complete overhaul," he said.
Earlier on Friday, Feb 5, the Congress Working Committee (CWC), headed by party president Sonia Gandhi urged the government to take adequate steps to control the soaring food prices.
The meeting which is also attended by union ministers, including Food and Agriculture Minister Sharad Pawar is likely to focus on the strengthening of public distribution system, along with improving the anti-hoarding measures adopted by the state governments.
Expressing his resentment on the way the government had handled the food inflation, Gujarat Chief Minister Narendra Modi said that the Center had failed to take adequate steps to control food prices.
"This meeting should have been called earlier. The current crisis of sugar availability is largely due to lack of good governance and political will to combat the crisis quickly," he said.
Maharashtra CM Ashok Chavan asked the Center to assist the state government in bringing down the rising food prices by raising subsidy on essential commodities.
Bihar Chief Minister Nitish Kumar, Madhya Pradesh chief minister Shivraj Singh Chauhan and Chattisgarh CM Raman Singh were united in blaming the government for the food crisis.
Meanwhile Uttar Pradesh Chief Minister Mayawati has stayed away from the meeting.