PM writes to CMs to take steps to control prices

New Delhi, Feb 22 (UNI) Alarmed at the unabated rise in prices, Prime Minister Manmohan Singh today wrote to all Chief Ministers to put in place an appropriate mechanism for regular intensive monitoring of commodity prices and take prompt action to check inflation.

The letter to all Chief Ministers was part of the Prime Minister's effort to sensitize various constituencies of the government on inflation.

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

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

''The State governments have a major role in checking prices of essential commodities by curbing malpractices, profiteering and hoarding. An efficient functioning of the Public Distribution System will ensure availability of essential commodities to low and middle consumers who are particularly sensitive to any rise in prices. The needs of below poverty line families have to be met, and if they are able to get their requirements under the Public Distributon System with ease, it would provide immense relief to them,'' he said.

The Prime Minister referred to the fact that the Central government has decided to set up a special Monitoring Cell in the Cabinet Secretariat, in addition to the existing institutional mechanisms in various Ministries, to keep a watch on the price situation and provide support to State governments. The letter said the State governments can approach the Cell directly for any issue requiring quick resolution and for removing any bottlenecks in the availability of essential commodities.

Dr Singh said the major commodities which have contributed to difficulties for the commonman included pulses, edible oils, wheat and milk. The price rise has also been affected by the increase in prices of several manufactured commodities, like cement, critical for the fulfilment of housing needs.

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

UNI