FM rules out amendment to Essential Commodities Act

New Delhi, May 4 (UNI) Only five Chief Ministers have so far responded to the circular by the Union Ministry of Agriculture directing them to impose a ceiling on commodity stocks and check hoarding under the Essential Commodities Act, Finance Minister P Chidambaram told the Lok Sabha today.

Replying to supplementaries, he said the power to pass control order on stock limits and start dehoarding operations under the Essential Commodities Act has been restored to the States. Earlier, the States were required to take the permission of the Union Government for taking action against the hoarders.

Mr Chidmabaram said there was no need to amend the Essential Commodities Act for the Union Government to take upon itself the powers to act against hoarders as the power to do so had now been vested with the states. It must take action against hoarding, he said and added ''we will assist them.'' He said the Government was taking both long term and short term measures to contain inflation. While the change in excise duty rates yielded immediate results, the monetary measures take some time to become effective.

To control prices, the RBI had taken some action on the demand side while the Ministry of Agriculture was taking action on the supply side.

The Finance Minister said the consumption of all foodgrains in the country had been rising and steps were needed to augment supply. Production of wheat and other foodgrains had to be increased and as a short term measure imports would have to be resorted to.

Quoting Minister for Agriculture Sharad Pawar, he said this year not only the production of wheat but also its procurement was expected to be much higher which would help moderate its prices. As for the pulses, it was imported and its supply was being augmented.

Regarding the suggestion for rationing of pulses, the Finance Minister said it was for the Ministry of Agriculture and Ministry of Civil Supply to look into it.

UNI