After attacking the UPA Government for its failure to control inflation and making it a key issue of its lok Sabha election campaign, the BJP-led NDA Government seems to have made up its mind to take the issue head on.
The Cabinet Secretary on Saturday held a meeting of a Committee of Secretaries (CoS) to discuss ways of combating black marketing and hoarding of food grains as the possibility of a deficient monsoon looms large over the nation this year.According to sources, the Government is learnt to have mulled the option of tweaking the Agricultural Produce Marketing Committee (APMC) Act which could help farmers sell their produce directly to retailers without the commission agents acting as middlemen.
The presence of middlemen sends the entire price cycle of agricultural produce skyrocketing which directly results in fruits, vegetables and food grain prices going through the roof by the time they reach the neighbouring markets.Cabinet Secretary Ajit Seth, who heads the CoS, met Secretaries from Agriculture, Food, Commerce and Finance Ministries to discuss ways to tackle inflation. Sources privy to the developments said apart from the possibility of changes in APMC Act, the Government is also likely to issue strict orders against black marketing and hoarding.
There is a possibility the Government may increase Central purchase of food grains to address the problem of hoarding in case of a poor monsoon this year, as it would be in a position to provide food grains at normal prices.
The National Pharmaceutical Pricing Authority recently ordered drug manufacturers to provide within ten days, details regarding cost and annual turnover of 106 drugs. In case these details are not made available during the stipulated time limit, sources said, stern action would be taken under provisions of ESMA. This too is being seen as a move to control prices of essential drugs in case situation goes out of hand owing to price rise. listing tackling of price rise as top of its agenda, the BJP in its manifesto had highlighted measures like setting up of a price stabilisation fund, establishment of special courts to deal with hoarding and black marketing, unbundling of the Food Corporation of India and establishment of national agriculture market, to combat the problem.
It is feared that the onset of an El Nino factor can lead to a deficient monsoon. The Reserve Bank of India in its second bi-monthly monetary policy review for this fiscal had listed some upside risks to the economy like a sub-normal or delayed monsoon due to El Nino effect.
latest data showed that consumer price-based inflation had risen to a three-month high of 8.59 per cent in April largely due to higher food prices. As per the data released by the Government last month, the Wholesale Price Index inflation in the overall food segment had eased to 8.64 per cent in April, from a high of 9.9 per cent in March.The overall situation related to price rise, experts say, is still not out of the woods as monsoon is a key factor in containing prices since majority of agriculture production is dependent on rain feed system of irrigation. And if monsoon is deficient, then the Government will have a tough job at its hands.