The government has announced a number of steps to contain price rise, specially the food inflation. It has also set up an inter-ministerial group under the Chief Economic Advisor to review the overall inflation situation particularly that of the primary food articles. The group will recommend fiscal, monetary and other actions on the production, distribution and marketing front to control the spurt in prices. The other measures announced yesterday are: Review of import and export of all essential items on a regular basis; Imposing controls on exports, and easing imports restrictions, including tariff reduction wherever necessary to improve domestic supplies.

The States have also been asked to consider the waiving of mandi tax, octroi and other local levies, which obstruct the smooth movement of essential commodities, and to reduce commission agent charges. A scheme to support the state governments in the setting up of farmers’ mandis and mobile bazaars and to improve the functioning of civil supplies corporations and cooperatives will be finalised urgently. Apart from strengthening the public distribution system, the states will be asked to consider exempting horticultural products from the purview of the Agricultural Produce Market Committee to remove bottlenecks in this sector. The government will also take stringent action against hoarders and black marketers manipulating market prices to ensure that products reach markets in a timely manner and that prices are moderate. The announcement of the measures follows a meeting convened by the Prime Minister Dr. Manmohan Singh on Tuesday in the wake of food inflation crossing the 18 per cent mark with prices of several food items registering a sharp increase specially the price of Onions.

With regard to onions whose prices had soared to 80 rupees a kg some days ago the NAFED and NCCF will undertake the sale of the commodity at 35 rupees a KG from their outlets. It says that the arrival of onions from Pakistan will help cool the prices saying that import of 1000 tones of onions has already been contracted.