State dragging its feet on reining in inflation

MUMBAI: Prime Minister Manmohan Singh might have wished for greater contribution from state chief ministers to rein in inflation. But the ground reality here in Maharashtra is somewhat different. Chief minister Vilasrao Deshmukh is yet to convene a meeting of the high-power committee he had set up for the same purpose in September 2006.

Voicing concern over the rising prices, Mr Singh last week appealed to all the chief ministers to keep tabs on prices of essential commodities. In other words, the PM wanted that the CMs meet at regular intervals to take stock of the situation and bring in remedial measures.

But good intentions often fail to materialise, thanks to politicians’ way of functioning. The case in point is the Maharashtra experience. The state CM, in September 2006, had appointed a high-level panel — which virtually has every minister of the Cabinet — to check prices under his leadership. Interestingly, the jumbo committee also has the state police chief, the transport commissioner, all district collectors, Food Corporation of India and the director of information and publicity as its members.

Subsequently, the government formalised the appointment of the committee members. As per its terms of reference, it will meet every three months, review the situation at hand, talk to traders’ body to prevent hoarding of essential commodities and direct raids, if required. But the saddest part is the panel is still to meet.

And this has been pointed out by Kanhaiyalal Gidwani, a Congressmen himself and the convenor of the commodity cell of the state party unit. “The Maharashtra government has failed totally in controlling the prices of essential commodities. The unrest among people is totally justified,” Mr Gidwani admitted, while speaking to ET.

He, in fact, has dashed off a missive to Mr Deshmukh and his deputy RR Patil, an NCP veteran, reminding them about the government’s lackadaisical approach in convening a meeting of such an “important committee”.

“It is anguishing to find that in spite of the hardships faced by people and the Prime Minister calling a meeting of all state chief ministers to take urgent steps, the Maharashtra government has done precious little,” he said. “This is a very serious matter, and any further delay would add to the public displeasure,” his letter read.