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Runaway prices

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Cithara Paul Posted: Mar 26, 2008 at 0120 hrs IST
The issue of price rise has got maximum attention in the latest issue of People’s Democracy. It says the Government must take three steps to contain the runaway inflation.

“Firstly, to ban futures/forward trading in the 24 essential commodities identified by the Commission for Agricultural Costs and Prices. Under pressure from the Left, the government has so far removed pulses, rice and wheat from the forwards market. However, unless all essential items, including edible oil, are prohibited from speculative trading, this price rise cannot be combated,” it says. Secondly, according to PD, the government’s decision to drastically cut the supply of foodgrain for the public distribution system (PDS) network to the states has further compounded the problem. It questions the government’s explanation in Parliament — that these reductions are because many states are not utilising the allocations made to them.

Price rise can only be arrested if the public distribution system is expanded to distribute all essential commodities. PD blames the UPA government for being bent on supplying foodgrain only for BPL categories. It claims that the government is aiming to eliminate the APL from the PDS system. “This would be disastrous,” it warns.

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