Govt to pump in more funds to tackle price rise-29/7/10

Govt to pump in more funds to tackle price rise

TNN, Jul 29, 2010, 05.38am IST



PANAJI: The government's intervention scheme on price control to provide food items at subsidized rates will be suitably modified for people's benefit and more funds will be pumped in to expand its outreach, chief minister Digambar Kamat told the assembly on Wednesday.

While the half-hour discussion on price rise proposed by MLA Damodar 'Damu' Naik generated much heat and spilled beyond the specified time, civil supplies minister Jose Philip D'Souza was often interrupted during his reply, by BJP MLAs raising the issue of astronomical rise in food prices.

D'Souza explained in his reply that the price rise was not only a problem in all states but also a global phenomenon and assured efforts to work out a solution in tandem with all members of the house. On the other hand, the CM agreed to modifications amidst din, even as Naik moved to the well of the house crying, "Shame, shame".

Deputy speaker Mauvin Godinho who was in the chair declared the discussion closed and adjourned the house for the day even as other BJP MLAs tried to join Naik. "The government is open to modifying the scheme and to contributing more funds in the people's interest," Kamat said while trying to pacify the opposition MLAs.

Leader of opposition Manohar Parrikar said an allocation of Rs 4 crore was inadequate and demanded that the government specify a higher amount. "An average person needs 5 to 6 kg of rice per month," he said.

Conceding that there might be flaws in the scheme, Kamat pointed out that it was started in public interest and was the only one of its kind in the country.

Parrikar countered that Chattisgarh had a scheme of distributing essential items under the public distribution system, which commenced in the first week of every month and concluded with a report of distribution.

Kamat said inflation is caused by different factors including less rainfall, demand and supply problem and other reasons. Refuting the opposition's charge that inflation had shot up during the UPA rule, he said that it was also witnessed during the NDA rule. "The prices also went up and came down during the NDA rule," he said.

Meanwhile, Kamat also said that the state horticultural corporation should purchase vegetables produced by local farmers and the latter should therefore not have to sell their stuff by the roadside.

He also warned of strict action against LPG dealers in the wake of complaints by Mandrem MLA Dayanand Mandrekar and others that some were demanding money for allotting LPG connections.

Kamat told the house that he had issued directions to deputy collectors in both districts to convene a meeting of the dealers on the issue.

He assured that the government would not hesitate in cancelling their permissions and even initiate action against mamlatdars if they don't act in case of complaints against dealers.

Meanwhile, Naik said that inflation had shot up during the last five years. The price of wheat had gone up from Rs 24 to Rs 300, sugar from Rs 14 to Rs 35/40, oil from Rs 40 to Rs 100. "The subsidy being given by the government is not much," he said.

Parrikar said that tonnes of wheat were rotting in godowns while inflation impacted the poor. The rice quota was inadequate and was not reaching people in rural areas, he said. Questioning the state horticulture corporation's motive for profit, he said it had purchased food items worth Rs 14 crore during the last three years and achieved a profit of Rs 3 crore. Why should the government provide it a subsidy of Rs 6 crore," he asked.


MLA Vijay Pai Khot said prices had gone up 300% in the last three years. "Inflation is everywhere in our country, but the reasons for it should be found out," he said.

MLA Pandurang 'Deepak' Dhavalikar explained that under the price control scheme, the corporation purchases items at auction price in Belgaum and sells at the same price and recovers transportation cost from the government. "The long queues and exhaustion of stock within few hours points to the scheme's success," he said

MLA Dayanand Narvekar termed the government's intervention in price control a failure and said no remedial measures had been initiated despite several suggestions. He said that transportation as well as outlets started by the horticultural corporation were inadequate to distribute food items in all 189 panchayats.

Dhavalikar, however, said when he took over as minister, the rice quota was only 500 metric tonnes and after meetings with union agriculture minister had increased it to over 2,000 metric tonnes.

He said his department was conducting inspections to check hoarding and black-marketing and urged all MLAs to join hands in finding a solution to the price rise issue. He said if the government provided more funds to the department, he could improve the outreach of the scheme and cater to more people.