<p> Addressing chief secretaries here, Singh noted that much of the responsibility for checking price rise lays with the states. And inflation affects poor “harder” and poses a serious threat to the country’s growth momentum.<br /><br />“Much of what needs to be done...lies in the domain of state governments. There seems to be a strong case for waiving mandi taxes, octroi and local taxes, which impede the smooth movement of essential commodities.” He said while the Centre will provide support for checking inflation, each state has to work out a suitable plan of action suited to its requirements and its capabilities. <br /><br />He said a year ago the “primary concern” was the rising prices of cereals, pulses, edible oils and sugar. The prices of these commodities were being pushed up owing to the drought of 2009. <br /><br />“These tendencies were reined in successfully due to additional releases through the public distribution system, augmentation of supplies through imports and curbs on exports and a determined effort to increase production,” he said. <br /><br />The recent spurt in prices had been driven by an increase in the prices of vegetables, fruits, milk, meat, eggs and fish. “This poses a different kind of problem, as these commodities are not held in public stocks,” he stressed. Some of the increase in the prices of relatively superior food products like milk, eggs, meat and fish was partly attributable to rising income levels. <br /><br />Inflation is something which “needs to be tackled with great urgency.” He stressed the need for a paradigm shift in the institutional arrangements. He pressed the states for reviewing the functioning of the Agricultural Produce Market Committee Acts on an urgent basis.<br /><br />“The public distribution system needs to be strengthened. Storage facilities have to be augmented. Supply chains need to be strengthened and these need to be dovetailed with organised retail chains for quicker and more efficient distribution of farm products and more remunerative prices for our farmers,” the prime minister said.</p>
<p> Addressing chief secretaries here, Singh noted that much of the responsibility for checking price rise lays with the states. And inflation affects poor “harder” and poses a serious threat to the country’s growth momentum.<br /><br />“Much of what needs to be done...lies in the domain of state governments. There seems to be a strong case for waiving mandi taxes, octroi and local taxes, which impede the smooth movement of essential commodities.” He said while the Centre will provide support for checking inflation, each state has to work out a suitable plan of action suited to its requirements and its capabilities. <br /><br />He said a year ago the “primary concern” was the rising prices of cereals, pulses, edible oils and sugar. The prices of these commodities were being pushed up owing to the drought of 2009. <br /><br />“These tendencies were reined in successfully due to additional releases through the public distribution system, augmentation of supplies through imports and curbs on exports and a determined effort to increase production,” he said. <br /><br />The recent spurt in prices had been driven by an increase in the prices of vegetables, fruits, milk, meat, eggs and fish. “This poses a different kind of problem, as these commodities are not held in public stocks,” he stressed. Some of the increase in the prices of relatively superior food products like milk, eggs, meat and fish was partly attributable to rising income levels. <br /><br />Inflation is something which “needs to be tackled with great urgency.” He stressed the need for a paradigm shift in the institutional arrangements. He pressed the states for reviewing the functioning of the Agricultural Produce Market Committee Acts on an urgent basis.<br /><br />“The public distribution system needs to be strengthened. Storage facilities have to be augmented. Supply chains need to be strengthened and these need to be dovetailed with organised retail chains for quicker and more efficient distribution of farm products and more remunerative prices for our farmers,” the prime minister said.</p>
