Price stability high on agenda, says govt

NEW DELHI: The government has said it will unveil more measures to tame high inflation, adversely impacted the common man. Some of the important steps the government intends to implement include schemes enabling state governments to set up farmers’ mandis and mobile bazaars , strengthening of the Public Distribution System (PDS) through computerisation and opening more procurement windows across the country, minister of state for finance Namo Narain Meena told the Rajya Sabha in a written reply.

The government also intends to review the Agriculture Produce Marketing Committee Act to consider exempting horticulture products from its purview, thereby mitigating marketing and distribution bottlenecks, he said.

Wholesale price index based inflation stood at 8.23% in January, 2011 as against the central bank target of 7%. State governments would be urged to waive mandi tax, octroi and other local levies, as well as reduce commission agent charges, while encouraging investment in supply chains, he added. “High inflation affects the common man on account of reduction in the value of currency relative to goods and services," he said in a written reply .

The government monitors the price situation regularly, as price stability remains high on its agenda, he said. Measures taken to contain prices of essential commodities include a ban on exports and futures trading in foodgrains, zero import duty on select food items and permitting the import of pulses and sugar by public sector undertakings, he said.