Govt steps in to curb rising prices
PTI
NEW DELHI, JAN 13
Promising to crack down on black marketeers and hoarders, the Government today unveiled measures to check spiralling prices by deciding to continue ban on exports of edible oils, pulses and non-basmati rice and asked States to waive local taxes on essential commodities.
After two days of discussions at the highest level, chaired by Prime Minister Manmohan Singh — on a day weekly food inflation showed some moderation — the Government constituted an inter-ministerial group under Chief Economic Advisor Kaushik Basu to review the overall inflation with particular reference to primary food articles.
Admitting that food prices have frequently risen at “unacceptable rates”, a statement issued by Prime Minister’s media advisor said that the “current bout of inflation is driven by rise in prices of vegetables and fruits which is more difficult to manage because they are not held in public stocks.”
Attributing the rise in prices, the Government said that fast growth of the economy, put greater income in the hands of the relatively poor whose food consumption increased. This led to rise in prices of milk, eggs, meat and fish.
On measures that it proposes to take, the Government said it would take stringent action against hoarders and black marketeers manipulating market prices.
