FM puts onus on states to halt price rise
New Delhi: With inflation rising sharply to a five-month-high, finance minister Arun Jaitley on Tuesday held a high-level emergency meeting which decided to discourage the export of onion and potatoes and allowed farmers to directly sell fruits and vegetables in the market, bypassing mandis.
The Centre has advised state governments to crack down on hoarders of essential commodities in anticipation of a weak monsoon.
The government will also release more rice into the market to keep a check on its price.
Read: Modi government takes steps to control inflation
As far as pulses and edible oils are concerned, a line of credit will be extended to the states so that they could quickly import them if they witness any shortages of these essential items.
“States are being advised to delist fruits and vegetables from the Agricultural Produce Market Committee (APMC). This means that farmers will have the option of either going through APMC and middlemen or going to the open market themselves,” Mr Jaitley said.
Read: Arun Jaitley draws flak from opposition leaders for rising inflation
Earlier in the day, the commerce ministry had set the minimum export price for onions at $300 per tonne to discourage overseas shipments.
Until early March, the minimum export price was $150 per tonne.
“There are 22 commodities which are under active observation of the government,” Mr Jaitley said, adding that a rise in prices has been noticed in four-five commodities.
Jaitley also took to Facebook to put forth his rising inflation concerns
The year on year WPI inflation for the month of March has moved upto 6.01% as compared to 4.58% in the corresponding period last year.
The increase is primarily on account of higher inflation in food articles, fuel and power costs. The Government is seized of the matter and is committed to ease supply side constraints. The rise in prices of food articles can also be attributed to withholding of stocks on account of apprehension of a weak monsoon.
Read: RBI chief says next few quarters will be engaged in combating inflation
The State Government should take effective steps to ensure that speculative hoarding is discouraged. The Government is committed to take measures, which will positively impact the GDP and result in higher growth than expected.
I am hopeful that the inflation which is moving upwards now would eventually come down.
The Government is watching the movement of rupee closely.
Read: Hoarding also responsible for rising inflation: Arun Jaitley
The slight instability of rupee is essentially because of Iraq oil shocks and global fear of oil price rise.
Inflation Concerns: http://t.co/I5SqcWyMIJ
— Arun Jaitley (@arunjaitley) June 16, 2014