Allies insist on rollback of prices

By Our Special Correspondent

NEW DELHI, APRIL 19. Categorical assertions by the Government that it cannot afford to roll back the recent price hikes, given the state of the economy, did not have the desired impact on the allies of the National Democratic Alliance (NDA) who continued to press for reconsideration of the hike in prices of foodgrains distributed through the Public Distribution System and of the petroleum products.

Even as the Minister for Consumer Affairs and Public Distribution, Mr. Shanta Kumar, rejected the demand for a rollback in the Rajya Sabha, the allies of the NDA have decided to have an informal meeting tomorrow to consider their strategy to pressure the Government to respond to their concerns on the issue.

On Tuesday, the Petroleum and Natural Gas Minister, Mr. Ram Naik, while replying to clarifications of members to his statement on petroleum products price hike, had ruled out reconsideration of the hikes.

However, the only consolation for the Government is that the allies are not willing to go all out to force the Government accept their demand. A senior leader of a key constituent of the BJP conceded that they are not in a position to vote on the cut motions proposed to be moved by the Congress(I) on the Finance Bill.

``You cannot expect us to vote with the Opposition and create a situation that could lead to the fall of the Government. We are no doubt unhappy, but we have our limitations. We can only hope that the Government listens to us,'' remarked the NDA leader.

Despite the hard-hitting speech by the Prime Minister, Mr. A.B. Vajpayee, in defence of the price hikes at a rally organised by the Delhi BJP in the first week of April, and the party national executive resolution on the eve of the second half of the budget session of Parliament, there is disquiet on this front even in the BJP circles.

The Union Finance Minister, Mr. Yashwant Sinha, who returned from Washington this morning will meet the BJP MPs tomorrow in a bid to explain them the compulsions of the Government in resorting to price hikes.

Former Union Minister and Janata Dal (United) leader, Mr. Devendra Prasad Yadav, who has been in the forefront among the allies, is holding a press conference tomorrow to reiterate the demand of the allies on the price hike issue.

`No obligation to subsidise'

Replying to the short-duration discussion in the Rajya Sabha on the price hikes, Mr. Shanta Kumar asserted that the Government was under no obligation to provide food subsidy to those above the poverty line and justified the hike in prices of foodgrains as a follow-up to the policy decision taken during the United Front regime that enjoyed the support of the Congress(I).

``We are under no obligation to provide food subsidy to those above the poverty line (APL). The Planning Commission had recommended doing away with subsidies for the people above the poverty line and to provide subsidies only to those below the poverty line (BPL).''

The Minister's response came after the Opposition made a passionate plea for a rollback of the foodgrain price hikes. The Government faced embarrassing moments when Telugu Desam Party MP, Mr. C. Ramachandraiah, made a scathing attack on the Government's approach towards subsidy on foodrains and fertilizers.

Mr. Shanta Kumar, whose reply was interrupted time and again by Left party and Congress(I) members, said the Government had provided an additional subsidy of Rs. 2,270 crores which worked out to Rs. 30 per BPL family.

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