New Delhi: The war on price rise has turned into a battle between the Centre and the states with chief ministers of Opposition ruled sates blaming the United Progressive Alliance Government for the rising prices of food items.
Prime Minister Manmohan Singh met chief minister of states in New Delhi on Saturday on the price rise issue and asked them to act against and crack down on hoarders.
He sent out a tough message warning hoarders of strict action under the Essential Commodities Act.
Addressing the chief minister, Singh assured them that the worst is over on food inflation and added that the states should do more to keep prices in check.
"The worst is over as far as food inflation is concerned. I am confident that we will soon be able to stabilise food prices," he said.
The Prime Minister said the food distribution system is hopelessly outdated and needs a complete overhaul.
He also asked states to forego VAT on sugar saying the role of states in the rise of sugar prices needs to be assessed.
"As far as the sugar is concerned role of states is important. States also need to ensure that inflation is controlled and that the supplies by the Centre should reach all beneficiaries," said Singh.
"This is not the first time we are facing high rates of inflation in food articles. We had a similar upsurge in 1998. We must work together as Centre and state to bring it under reasonable control," he said.
He added that prices of pulses and also its supply have been a major problem for the country though steps have been taken to improve the situation.
"Prices of pulses are still a great problem. They have risen steeply and its supply has been a bigger problem. We are setting up a National Mission of Pulses to look into it. But the production of pulses consumed in our country frequently is still a problem area we have to deal with," he said.
He also asked the states to gear up on rabi crops and also plan the kharif production of 2010.
"I urge the chief ministers of states to conduct a review of rabi crops as far as wheat is concerned. In addition to this kharif production for 2010 should be planned to ensure all necessary steps well in time," he added.
But the chief ministers passed the buck blaming the Center for the price rise mess and said that price rise is a national problem and only state government cannot be blamed.
Gujarat Chief Minister Narendra Modi blamed Centre's bad governance for the price rise.
"Steps initiated by government have proven to be inadequate. Climate is not the reason for price rise. Price rise cannot be linked to rise in crude oil prices. Government should supply pulses at reasonable rates," said Modi.
Uttarakhand Chief Minister Ramesh Pokhriyal Nishank, who like Modi is from the BJP, said that Centre should not blame the states for rising prices.
Uttar Pradesh Chief Minister Mayawati accused the Centre of issuing statements that have further added to price rise while West Bengal Chief Minister Buddhadeb Bhattacharya added that inadequate central investment in irrigation projects is to be blamed for price rise.
Union Agriculture Minister Sharad Pawar tried to smooth feathers praising praised the Punjab and Gujarat governments for their actions to raise food grain production and drought alleviation.
"There are states that have done well even though there was a poor spell of monsoon. Punjab and Haryana have ensured that food production will not go down despite drought. Gujarat has done good job in water conservation," said Pawar.
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