The Hindu : Karnataka / Bangalore News : NDA blamed for price rise

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Wednesday, May 14, 2008
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Karnataka

Karnataka - Bangalore

NDA blamed for price rise

Special Correspondent

BANGALORE: Chairman of the Administrative Reforms Commission M. Veerappa Moily on Tuesday said that removing licensing requirements, stock limits and movement restrictions on specified food items under the Essential Commodities Act by the National Democratic Alliance (NDA) Government seven years ago was responsible for the price rise now.

In a press release, Mr. Moily said that all restrictions on coarse grains, sugar, edible oilseeds and edible oils, foodstuffs such as pulses, gur, maida, atta and vanaspati were removed in 2002 and 2003.

The NDA withdrew Essential Commodities Control, Movement and Storage Regulation in 2003, leading to the dismantling of the market mechanism.

It also permitted speculative futures in trading through a notification the same year, he added.

Cut to 15

The number of commodities designated as essential commodities, which stood at 70 in 1989, was brought down to 15 during the NDA regime, he said. Denying the charge that the United Progressive Alliance-led Government was responsible for inflation, Mr. Moily said that it stood at eight per cent in 2000, but came down to seven when the UPA took over.

It was in the range of 3.5 per cent to 4.5 per cent up to February this year and was under control as the Government had taken all fiscal and monetary policy measures to contain it.

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