Date:17/02/2007 URL: http://www.thehindu.com/2007/02/17/stories/2007021712900100.htm

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Alarm bells ringing over runaway prices

Special Correspondent

Government not doing enough, charge allies as well as Opposition parties

NEW DELHI: Political parties supporting the Union Government as well as those in the Opposition strongly feel that the steps taken so far to control "runaway" inflation are not enough. They are not impressed by the latest cut in petrol and diesel prices and have said that this would not have any effect on the soaring prices of essential food items.

The Communist Party of India on Friday joined the CPI (M) and the Nationalist Congress Party in mounting pressure on the Government to control the "runaway" price rise. Announcing its plans to take to the streets, the CPI said the Government should scrap forward trading in food grains and other essential commodities, check hoarding, restore and strengthen the public distribution system, and effectively implement the Essential Commodities Act.

The Bharatiya Janata Party's view is not very different. Its spokesperson Prakash Javadekar blamed lack of timely interventions by the Government, such as import of pulses announced on Thursday and a ban on export of wheat a few days ago, for the increase in prices of these articles used daily by the common man.Mr. Javadekar said Prime Minister Manmohan Singh and at least three Union Ministers — Agriculture Minister Sharad Pawar, Commerce Minister Kamal Nath and Finance Minister P. Chidambaram — were directly responsible.

Dr. Singh, he said, was too busy with India-Pakistan affairs; Mr. Pawar was too involved in cricket and its politics; and Mr. Nath spent more time thinking about special economic zones than announcing timely imports and banning export of food items that would ensure an adequate supply for the domestic market.

Mr. Chidambaram, the BJP spokesman said, was trying to manipulate demand by curtailing money supply but had done nothing to ensure there were no shortages that pushed prices upward.

The CPI pointed out that the much talked about 9 per cent economic growth was not bringing any cheer to the average Indian burdened by rising inflation. The party charged that the Government had turned a deaf ear to all its earlier warnings, including the need to reduce prices of petroleum products.

The party welcomed the cut in petrol and diesel prices but described the move as a "belated cut" that was unlikely to curb inflation to any appreciable extent.

About the spiralling prices of essential commodities, the CPI said: "To shrug it off as a temporary phenomenon, as the minions of the Finance Ministry are doing, is both naive and dishonest."

Future trading in food grains and other essential commodities had allowed private business and multinationals to indulge in hoarding and thrive on high inflation, it added.

The CPI accused the Government of deliberate mismanagement of the economy to benefit the interests of private big capital at the cost of consumers.