PM Meets Chief Ministers Over Price Rise

Manmohan SinghPrime Minister Dr. Manmohan Singh has started a conference with State chief ministers to control the rising inflationary figures.

Dr. Manmohan is expected to ask states to amend the Public Distribution System and lift up farm output.

The gathering will also appraise the effectuation of the important commodities act to verify the hoarding of essential food items.

The conference comes a day after a Congress Working Committee (CWC) over costs in which Sharad Pawar, Agriculture Minister, came under attack for his handling of the situation.

Various Congress heads lash out at Pawar without actually mentioning his name.

Congress party has confronted criticism from different opposition parties over the increasing rates of commodities.

In December last year, the wholesale price index surged 7.3% from a year earlier, its highest since November 2008, and increased from a 4.8% gain in November.

The surge was driven by near 20% jump in food rate that climbed on less rains and flooding in most parts across India, but inflation in manufacturing products surged to 5.2% from 4% in November.

Sugar, especially, has been a trouble, with Congress party caught amid opposing demands from buyers who want lesser prices while cane farmers look for higher prices for their produce.

The supply situation dropped further in recent months when UP, trying to aid cane growers, banned processing raw sugar, blocking 750,000 tonnes of raw sugar at ports.