Already having created an uproar in the Parliament over the issue of price rise, the opposition parties especially the left parties proceeded to exert pressure on the Indian Government on all fronts.
Facing a growing pressure from them, the Indian Government has proposed to take tough measures against the price rise of essential commodities to check inflation under control. As revealed by the Finance Minister P.Chidamabaram, the government, in order to effectively check the price rise and for controlling inflation, the Government is even ready to sacrifice revenue.
Emphasizing the need of more administrative measures, the Indian Government has already taken some fiscal and monetary measures in the past few weeks to check price rise. The state governments have been directed to take action against the hoarders and blackmarketeers under the Essential Commodities Act and only 348 cases of conviction has been made in the last year.
Raids and searches to check the stocks of traders have been done only by five states, unearthing large quantities of food grains. Hence State Governments have been called upon to invoke powers vested in them under the Essential Commodities Act, besides imposing severe stock limits and to raid those who hold stocks above the prescribed limits. Despite of being blamed by the opposition parties, the Indian Government has been lifting of the food grains to the PDS between 2004 to 2007.
Realising the need for more supply to catch up with the demand, the steel and cement manufacturers have been warned against forming cartels and exploiting the demand supply situation.
While the Reserve Bank of India had taken appropriate steps on money supply and liquidity, fiscal measures such as excise duty cuts, were also taken. The prices of food , fuel and other items which were imported had a price rise, since their prices at the Global level had increased.
The Indian Government would leave no stone unturned in combating inflation and the opposition parties like BJP which are ruling in a number of states should stop hoarding and open their godowns in their respective states.
The Union Minister for Agriculture, Mr.Sharad Pawar has assured of that there is enough food stocks in the country and the price of essential commodities had shown stabilizing trends in the past one month.The Indian Government had decided to import one million tones of edible oil and 15 lakh tones of pulses to overcome the shortage, which would help in lowering their prices.He also said that the Indian Government would ban futures trading on essential commodities, if the Abhijeet Sen Committee did not support its report within ten days.
It appears that the Central Government has been taking vigorous steps in the right direction to check inflation and control the prices of essential commodities, but the co-operation of all concerned is required to move forward.
Leave Your Comments