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Govt failing to feel the pulse of rising prices.


Date: 20-06-2016
Subject: Govt failing to feel the pulse of rising prices
New Delhi: Every time the prices of pulses, tomatoes, potatoes or onions shoot up, the Centre announces measures, including a crackdown on hoarders, but fails to deliver immediately.

Firstly, hoarders know that imports take time considering India's huge demand and the process of getting the items from the international market. Secondly, it's the state governments which have to get their act together since crackdown on hoarders and fixing stock limits fall under their purview. Third, the measures come mostly as knee-jerk reactions and are not pursued once prices become normal .

For example, soon after the NDA government assumed office in 2014, onion prices touched Rs 100 a kg and tomato prices soared. The government planned to create its own storage and had even held talks with scientists for improving the shelf-life of vegetables. The agriculture ministry even mulled the need to go for rotational crops across the country to ensure minimum supply of key kitchen items throughout the year, but in vain.

"What we need is a policy and a robust mechanism rather than getting desperate every time prices go up," said an official. He said the government should devise a system to keep people informed about availability of items. "What can be done to increase tomato supply when production is hit because of adverse weather? You can't import them. We must have a good communication strategy."

On Friday, urad was selling at Rs 196/kg and arhar at Rs 166. The maximum prices of tomato and potato was Rs 80 and Rs 35/kg, respectively.

Source : timesofindia.indiatimes.com

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