PM sets up special cell to check rising inflation

By Staff
|
Google Oneindia News

New Delhi, Feb 22: Alarmed at the unabated rise in prices, PrimeMinister Manmohan Singh today wrote to all Chief Ministers to put inplace an appropriate mechanism for regular intensive monitoring ofcommodity prices and take prompt action to check inflation.

The letter to all Chief Ministers was part of the Prime Minister'seffort to sensitize various constituencies of the government oninflation.

The Prime Minister spoke about the measures taken and underlinedthe role of the State governments in keeping a check on prices ofessential commodities.

Stating that the increase in prices of some commodities has beenfuelled by speculation in the market, Dr Singh called for keeping awatch on the activities of anti-social elements who may indulge inspeculation and profiteering.

''The State governments have a major role in checking prices ofessential commodities by curbing malpractices, profiteering andhoarding. An efficient functioning of the Public Distribution Systemwill ensure availability of essential commodities to low and middleconsumers who are particularly sensitive to any rise in prices. Theneeds of below poverty line families have to be met, and if they areable to get their requirements under the Public Distributon System withease, it would provide immense relief to them,'' he said.

The Prime Minister referred to the fact that the Centralgovernment has decided to set up a special Monitoring Cell in theCabinet Secretariat, in addition to the existing institutionalmechanisms in various Ministries, to keep a watch on the pricesituation and provide support to State governments. The letter said theState governments can approach the Cell directly for any issuerequiring quick resolution and for removing any bottlenecks in theavailability of essential commodities.

Dr Singh said the major commodities which have contributed todifficulties for the commonman included pulses, edible oils, wheat andmilk. The price rise has also been affected by the increase in pricesof several manufactured commodities, like cement, critical for thefulfilment of housing needs.

Earlier in the day, the Cabinet Committee on Prices met to take stock of the price situation.


UNI

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