The Hindu : Front Page : Take steps to rein in prices: VS tells Centre

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Thursday, Dec 24, 2009
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Take steps to rein in prices: VS tells Centre

G. Prabhakaran

PALAKKAD: Chief Minister V.S. Achuthanandan has urged the Union government to take effective steps to contain price rise.

In an interview to The Hindu on Wednesday, the Chief Minister said the policies pursued by the Centre had led to the steep hike in prices, especially of essential commodities. The Centre was now asking the State government to take necessary measures to contain price rise. But, the State governments could not do much in this regard, as price rise was an all-India problem that the Union government should tackle.

Statement flayed

He criticised Union Agriculture Minister Sharad Pawar’s statement that the States had the responsibility to contain price rise and the Centre could only assist them.

Mr. Achuthanandan said the Centre had failed to prevent hoarding and black market operations. As a result, food stocks were now controlled by private companies who created artificial scarcity to jack up prices.

He said the Union government had virtually destroyed the public distribution system. It failed to stock essential food items at godowns of the Food Corporation of India and warehousing corporations.

He said Kerala was promised statutory rationing since it could not produce sufficient food items to meet its demand.

However, the Centre failed to honour the promise. The State used to get 1.13 lakh tonnes of ration items annually.

This had now been brought down to 13,000 tonnes of ration rice.

He said the Union government had signed international agreements without consulting the State governments.

The Indo-ASEAN agreement for free import of agriculture produce had resulted in decline in prices of agriculture goods, especially pepper, cardamom, coffee, tea, etc., produced in the State.

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