Cong asks CMs to launch more pro-poor schemes

NEW DELHI: With price rise denting its aam admi plank, the Congress leadership on Wednesday asked the state governments run by it to quickly design schemes targeted at the below poverty line sections.

Electing not to pin the entire blame for the price rise crisis on the previous NDA regime or take the blame game directed at the food and agricultural ministry headed by NCP leader Sharad Pawar further, the party has chosen to highlight, what party leaders described, as Congress president Sonia Gandhi’s “proactive” steps in dealing with the situation.

After Ms Gandhi’s meeting with chief ministers of Congress-ruled states on Wednesday, the party announced she had directed the state governments to create a chain of fair price shops and take action against hoarders in an attempt to arrest the price rise.

Party spokesperson Rajeev Shukla said that states were also given the go ahead to ‘moderate’ diesel prices. In the interaction with the chief ministers, Ms Gandhi also talked on the need to “strengthen” the public distribution system (PDS) and “ensure that it functions effectively and provides essential commodities to the common people at reasonable prices,” according to a party statement. These measures, expected to have an impact on all sections of society, stand out for their focus on the poor.

The party has identified the main problems that led to spurt in prices of grain as linked to low procurement, hoarding and speculation in forward trading. To deal with these problems it has asked for a “reconsideration” of an order of the NDA government, rescinding all control orders under the Essential Commodities Act.

The party statement issued after the chief ministers meeting also says the leaders of the Congress-ruled states asked to be “empowered to intervene in cases of essential hoarding”.

The statement also says that the CMs wanted forward trading in grain and some other essential commodities to be “better regulated” in order to curb “excessive speculation”. Sources said the government was likely to call an all-party meeting to discuss regulation for trading on the forward markets. The government could also summon the chief ministers of all states to discuss the price rise situation.

A section of the Congress is also in favour of targeting the PDS at BPL families, given the black-market operations in share meant for those in the above poverty line segment. But this is not politically feasible as the Left and other allies of the Congress are opposed to the proposal.

To deal with the problem of low procurement due to the intervention of private players in lifting agricultural produce, a senior Congress leaders suggested that “market intervention” could be way out.

With government arms buying up grain at market prices and directing it into the pubic distribution system, the leader said the problem of low procurement could be tackled. He also revealed that Mr Pawar had been in favour of market intervention but the proposal was turned down by finance minister P Chidambaram.

Wednesday’s meeting was attended by Prime Minister Manmohan Singh, finance minister P Chidambaram, defence minister Pranab Mukherjee and the minister of state for commerce Jairam Ramesh. Mr Mukherjee said after the meeting that the PM has attended the meeting in his capacity as a CWC member.