Govt. to launch multi-pronged strategy to deal with price rise

New Delhi, Mar 9 (UNI) Admitting that runaway inflation and steep rise in prices of essential commodities had become major irritants in the midst of a booming economy, the government today said it would launch a multi-pronged strategy, including a revamp of Public Distribution System (PDS), to deal with the problem.

Replying to a debate on a private member's resolution on the issue in the Rajya Sabha, Minister of State for Agriculture Kantilal Bhuria said the government would strengthen the procurement mechanism and the PDS to provide immediate relief to common people.

Asserting that the recent measures of the government had started yielding results, Mr Bhuria said prices of sugar, wheat and gram had become stabilised over the past few months.

''Customs duty on import of certain foodgrains has been reduced while export of pulses has been banned,'' he said, listing out the measures to check price rise.

In order to prevent leakage of foodgrains and essential commodities from the PDS shops to open market, he said a scheme had been launched for its total computerisation.

Further, it has been made mandatory for the vehicles carrying PDS items to carry on their windshield the names of dealers.

On the controversial forward trading in foodgrains, the minister said the Planning Commission had set up a committee, headed by its member Abhijit Sarkar, to look into the issue in all its facets.

Earlier participating in the debate, noted farmers' leader and Swatantra Bharat Paksha leader Sharad Anantrao Joshi came out in strong defence of forward trading in foodgrains, saying for the first time farmers had been given an opportunity to fix prices for their crops.

''This is happening not because of the munificence of a particular party but because of the technological advances,'' he said.

''Forward trading is not a gamble, it is a boon for the farmers...technology has emerged as the ultimate guard of the poor which is frightening those who have traditionally been enemies of the poor,'' he argued.

Strongly arguing for dismantling the PDS, he said the government should instead issue 'food stamp', which alone would ensure availability of essential commodities to the poor people at an affordable rate.

''PDS cannot be strengthened and improved because it is a part of the 'license-quota raj' and pilferage of commodities earmarked for ration shops end up by landing in open market,'' he said.

Mr Joshi also demanded that Food Corporation of India (FCI) should be dismantled and the Essential Commodities Act scrapped, saying these would go a long way in mitigating the hardships of the poor people.

With regard to spiralling inflation, he said it was neither because of supply constraints nor due to quantum increase in money supply.

''Inflation is the inevitable consequence of populist policies of the government,'' he said.

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