Fix 'price band' for essential commodities: Rajasthan CM:

Jaipur, Feb 28 (UNI) Rajasthan Chief Minister Vasundhara Raje has suggested the adotpion of 'price band' policy for essential commodities to control price rise.

The chief minister suggested that like the central policy of minimum support price on agricultural products for food grains, the central government should adopt a 'price band' of essential commodites. Central agencies like the NAFED and Food Corporation of India should be allowed to intervene in the market when prices of essential commodites fall below and go over the 'band price'.

The chief minister gave her suggestion in reply to a letter written by Prime Minister Manmohan Singh to the chief ministers, expressing concern over price rise.

In her reply to the Prime Minister's letter, the Chief Minister said reduction in the production of food grains, inflation and rise in prices of diesel and petrol were major reasons of price rise.

The Chief Minister expressed concern at the Centre's decision to reduce the allocation of wheat for APL families to 16959 metric ton from 1,57,682 in Rajasthan from June 2006, which she said has deprived a large section of the people from the cover of food security.

The chief minister promised to take all possible measures while pointing out that the state government's role in controlling spiralling prices is limited as prices were determined by the central policies.

UNI