Date:10/06/2008 URL: http://www.thehindu.com/2008/06/10/stories/2008061058930300.htm

Tamil Nadu

What government did to hold the price line

E.V. Velu

The Tamil Nadu Government has managed to persuade hoteliers to cut prices by 10 per cent and also make available a limited meal for Rs.20 across the State, following three rounds of meetings with the Tamil Nadu Hotel Association, which has a membership of 70,000.

The Food Minister, E.V. Velu, points out that though the Government cannot issue a directive to lower the prices of the food items, it was able to get hoteliers to agree to price cuts in the public interest.

The Tamil Nadu Hotel Association gave a written undertaking on bringing down the prices, and assured the Government that its members would not compromise on quality, and the agreed upon quantity with regard to the limited meals.

Mr. Velu listed the steps taken by the Civil Supplies Department to curb hoarding of raw rice, pulses and oil, and said officials had been being asked to monitor whether hotels were implementing the reduced rates.