Inflation to be curbed:FM ; Left parties incensed over price rise

New Delhi, June 23 (UNI) Amid nation-wide outcry over the spiralling prices of essential commodities, especially pulses, vegetables, wheat and fuel, Finance Minister P Chidambaram today said the government would not be found wanting, in taking further steps to check inflation.

Even as the increase in prices of food articles like pulses, wheat, eggs and spices, resulted in the inflation rate crossing the five per cent mark, touching a 12 month high for the week ended June 10, the Finance Minister was hopeful that the slew of monetary and fiscal measures taken by the government so far, would moderate inflationary expectations.

The Delhi government, in order to check spiralling prices and provide relief to the common man, has decided to sell tomatos at a 'controlled' price of Rs 20 a kg from tomorrow.

State Food and Civil Supplies Minister R K Chauhan took a decision to this effect at a high-level meeting attended by officials of the Food and Civil Supplies department and Agricultural Produce Marketing Committee.

Due to unseasonal rain in Himachal Pradesh and high temperature in Haryana and Rajasthan, tomatoes were selling at prices ranging between Rs 32 to 40 per kg.

''The government would take further steps if necessary to contain inflation. Monetary measures have been taken. Some fiscal steps have been taken and some action has been taken on the import side,'' the FM told reporters here, while adding that, ''I am confident that these steps will moderate inflation. If necessary we will take further steps.'' The government had yesterday allowed private parties to import wheat and sugar and imposed an immediate ban on the export of pulses as part of a slew of measures to dampen inflation and bring about restraint in the market The annual inflation based on the Wholesale Price Index (WPI) stood at 5.24 per cent, as against 4.72 per cent during the previous week.

Mr Chidambaram attributed the soaring prices to the pass-through of fuel prices.

Meanwhile, the Left parties, incensed over the UPA government's decision on selling stake in two PSUs and allowing free sugar and wheat imports, alleged that the Centre had succumbed to the whims and fancies of the WTO and sought rethinking on the subjects.

The government yesterday decided to disinvest ten per cent of its equity in two non-navratna public sector companies NALCO and Neyveli Lignite Coporation, besides allowing free import of wheat, pulses and sugar by private players to ''contain surging prices of essential commodities.'' The Left parties, who are likely to hold a joint meeting in first week of next month, will review the government's latest decision and might consider some ''drastic measure.'' ''The market-oriented policies are responsible for going back to the old days of dependence on import of food grains. The food security of our people has been gravely undermined, as a result of such policies,'' a party statement said here.

''The government should go for procurement for foodgrains from the farmers ensuing remunerative prices, rather than relying on imports involving private traders,'' it added.

UNI