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Sunday, Mar 18, 2007
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Act to curb inflation, States told

Staff Reporter

Tamil Nadu yet to fix stock limit for commodities, says Chidambaram

SIVAGANGA: Union Finance Minister P. Chidambaram said on Saturday that only five States had so far responded to the Centre's call to fix stock limit for commodities such as wheat, rice and pulses to control inflation.

Speaking to reporters after presiding over a review meeting held at the Collectorate here, he said many Governments, including that of Tamil Nadu, had not fixed the stock limit so far.

Prime Minister Manmohan Singh had written to all Chief Ministers to take steps to de-hoard various commodities, as it would bring down the prices. State Governments also had to act to control inflation.

Asked about the soaring price of cement, Mr. Chidambaram hoped that manufacturers would act responsibly to control it. "I hope, they will listen to the sound advice and take some constructive steps... " A marginal increase or decrease in the wholesale price index could not be taken seriously.

While agreeing that inflation was over 6 per cent for the sixth consecutive week, Mr. Chidambaram said the country had seen a high inflation rate in the past.

In 2000-01, it was over 6 per cent for 48 weeks, over 7 per cent for 22 weeks and over 8 per cent for 12 weeks. The Government and the Reserve Bank of India had taken several monetary and other measures to control inflation.

Demand for pulses

The mismatch between the supply and demand for pulses was cause for concern. The country produced 140 lakh tonnes, against the demand for 160 lakh tonnes.

The possibility of meeting the demand through import was low, as Myanmar and Turkey were the only two countries, which produced pulses of Indian taste.

Moreover, the total pulse production of those countries was very marginal.

Hence, self-reliance in production was the best solution to arresting the price rise. Asked about Chief Minister M. Karunanidhi's demand to ban online trading in essential commodities, the Finance Minister said a committee had been set up to study the issue.

He refused to answer the question whether the violence in Nandigram in West Bengal would lead to re-look at the special economic zone policy of the Government.

The Marumalarchi Dravida Munnetra Kazhagam's exit from United Progressive Alliance would not pose any problem to the Government at the Centre, as two of its four members had already parted ways with the party, Mr. Chidambaram said.

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