ID :
136408
Fri, 08/06/2010 - 13:28
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Take steps to revamp PDS, act against hoarders:FM tells states
LD FM
New Delhi, Aug 5 (PTI) India's Finance Minister Pranab
Mukherjee Thursday said that Centre had done whatever was
possible to blunt inflation and it was for the states to take
action against hoarders and revamp the public distribution
system to check prices.
At the same time, he said shortage of supply of food
items like pulses and edible oil, in tandem with hardening of
international prices, had compounded the situation, yet the
government's efforts have brought down food inflation from 21
per cent in December to 9.55 per cent now.
Replying to a debate on inflation in the Rajya Sabha
(Upper House of Parliament), Mukherjee said he is not passing
the buck to the states for controlling surging prices, but
most areas like public distribution system (PDS) and enforcing
the Essential Commodities Act lay with them.
"I shudder to think of a central mechanism to control the
distribution system in over six lakh villages," he said,
rubbishing the charges that the government is insensitive to
the plight of the poor.
The Finance Minister said no insensitive government takes
welfare steps like National Rural Employment Guarantee Act
(NREGA), providing right to education till 14 years, etc.,
initiated by the United Progressive Alliance (UPA) regime.
He said revamping the PDS is primarily a responsibility
of states and has to be done by them.
The Centre cannot decide as to what stock of foodgrains
has to be kept in which shops, he said.
The power to enforce the Essential Commodities Act is
with the state government, he added.
The Finance Minister said the Centre, on its part, has
taken steps to blunt inflationary pressures and took credit
for bringing down inflation to 9.53 per cent during the week
ended July 24 from over 20 per cent in December last.
"In December, the index was 21.6 per cent. Now, it has
come down to 9.53 per cent (week ended July 24)... it is
because of certain steps that were taken (by the government),"
he said.
However, the House adopted a resolution asking the
government to take more steps to control inflation.
Mukherjee said despite the government exempting pulses
and crude edible oils from customs duty, their supply could
not increase much because private players did not find landed
prices to be as remunerative.
Mukherjee attributed this to rising global prices for
these items.
The Finance Minister asked states to lift the stocks of
imported edible oil and pulses for distribution through the
PDS, on which the Centre is giving subsidy to the tune of Rs
15 and Rs 10 per kg respectively.
On the monetary front, Mukherjee said the central bank is
monitoring the demand factors that fuel inflation and will
adjust rates, if found necessary.
Reserve Bank of India (RBI) is taking steps in doses, in
coherence with the fiscal policy of the Centre, he added.
To a charge from the Communist Party of India-Marxist
(CPI-M) leader Sitaram Yechury on how the Centre can take
credit for giving subsidy to petroleum products when it has
raised taxes on the same, the Finance Minister said the
government has to take care of its fiscal position also.
He said he did not want to repeat the incident of 1991,
when India had to pledge gold for a few million dollars and
the then Indian Finance Minister had to wait at the doors of a
Finance Minister of the rich country to take his appointment.
He said states also get resources from the Centre's tax
on petroleum products.
As much as 34 per cent of states' tax revenue comes from
petroleum products, he pointed out and asked states to support
bringing them in the ambit of Goods and Services Tax (GST) so
that these products are not used as a milch cow.
The Finance Minister appreciated the National Democratic
Alliance (NDA) regime for deregulating petroleum prices, which
resulted in enhanced refining capacity in the country. PTI
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New Delhi, Aug 5 (PTI) India's Finance Minister Pranab
Mukherjee Thursday said that Centre had done whatever was
possible to blunt inflation and it was for the states to take
action against hoarders and revamp the public distribution
system to check prices.
At the same time, he said shortage of supply of food
items like pulses and edible oil, in tandem with hardening of
international prices, had compounded the situation, yet the
government's efforts have brought down food inflation from 21
per cent in December to 9.55 per cent now.
Replying to a debate on inflation in the Rajya Sabha
(Upper House of Parliament), Mukherjee said he is not passing
the buck to the states for controlling surging prices, but
most areas like public distribution system (PDS) and enforcing
the Essential Commodities Act lay with them.
"I shudder to think of a central mechanism to control the
distribution system in over six lakh villages," he said,
rubbishing the charges that the government is insensitive to
the plight of the poor.
The Finance Minister said no insensitive government takes
welfare steps like National Rural Employment Guarantee Act
(NREGA), providing right to education till 14 years, etc.,
initiated by the United Progressive Alliance (UPA) regime.
He said revamping the PDS is primarily a responsibility
of states and has to be done by them.
The Centre cannot decide as to what stock of foodgrains
has to be kept in which shops, he said.
The power to enforce the Essential Commodities Act is
with the state government, he added.
The Finance Minister said the Centre, on its part, has
taken steps to blunt inflationary pressures and took credit
for bringing down inflation to 9.53 per cent during the week
ended July 24 from over 20 per cent in December last.
"In December, the index was 21.6 per cent. Now, it has
come down to 9.53 per cent (week ended July 24)... it is
because of certain steps that were taken (by the government),"
he said.
However, the House adopted a resolution asking the
government to take more steps to control inflation.
Mukherjee said despite the government exempting pulses
and crude edible oils from customs duty, their supply could
not increase much because private players did not find landed
prices to be as remunerative.
Mukherjee attributed this to rising global prices for
these items.
The Finance Minister asked states to lift the stocks of
imported edible oil and pulses for distribution through the
PDS, on which the Centre is giving subsidy to the tune of Rs
15 and Rs 10 per kg respectively.
On the monetary front, Mukherjee said the central bank is
monitoring the demand factors that fuel inflation and will
adjust rates, if found necessary.
Reserve Bank of India (RBI) is taking steps in doses, in
coherence with the fiscal policy of the Centre, he added.
To a charge from the Communist Party of India-Marxist
(CPI-M) leader Sitaram Yechury on how the Centre can take
credit for giving subsidy to petroleum products when it has
raised taxes on the same, the Finance Minister said the
government has to take care of its fiscal position also.
He said he did not want to repeat the incident of 1991,
when India had to pledge gold for a few million dollars and
the then Indian Finance Minister had to wait at the doors of a
Finance Minister of the rich country to take his appointment.
He said states also get resources from the Centre's tax
on petroleum products.
As much as 34 per cent of states' tax revenue comes from
petroleum products, he pointed out and asked states to support
bringing them in the ambit of Goods and Services Tax (GST) so
that these products are not used as a milch cow.
The Finance Minister appreciated the National Democratic
Alliance (NDA) regime for deregulating petroleum prices, which
resulted in enhanced refining capacity in the country. PTI
TEAM
RDM
The information contained in this electronic message and any attachments to this
message are intended for the exclusive use of the addressee(s) and may contain
proprietary, confidential or privileged information. If you are not the intended
recipient, you should not disseminate, distribute or copy this e-mail. Please notify
the sender immediately and destroy all copies of this message and any attachments
contained in it.
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