Kerala to impose control to check prices

January 14, 2011 01:56 pm | Updated 01:59 pm IST - THIRUVANANTHAPURAM:

A store which sells organically grown vegetables and other food products. A file photo: K. Ananthan

A store which sells organically grown vegetables and other food products. A file photo: K. Ananthan

The State Government proposes to bring several articles such as chillies and onions in the ambit of Kerala Essentials Articles Control Act in a bid to control prices.

Food and Civil Supplies Minister C. Divakaran told the media here on Friday that the government would issue an Ordinance or executive order to bring items not covered under the Central Essential Commodities Act under the State law. This was to prevent hoarding and black marketing by regulating sale and purchase, warehousing, transport and distribution of essential articles.

The Minister recalled that the Central had lifted controls under the Essential Commodities Act in 2002, paving way for hoarding and black marketing. Though controls were reinstated in 2008, they were only for certain items such as wheat and pulses.

Mr. Divakaran said that the conference convened by Prime Minister Manmohan Singh to control prices had ended in sparring between the Congress and Nationalist Congress Party. Though the Centre had means to intervene effectively, it had even ignored the orders of the Supreme Court regarding distribution of grains in its godowns. It promise to supply rice at Rs. 3 a kg and wheat at Rs. 2 a kg to the poor was yet to be fulfilled. Kerala, on the other hand, was working as a role model in public distribution. Against this background, the State had urged the Center to convene a meeting of the food ministers.

He said that the Centre had rejected the State proposal for a Rs. 337-crore programme for distribution of 13 essential articles through 14400 ration shops and more than 3000 outlets of the State Civil Supplies Corporation. Kerala had sought 25 per cent grant for the project, but the centre said that such projects was not under its consideration.

He said that the State Planning Board had approved the project and his Department had sought inclusion of the project in the coming year’s Budget. The Cabinet had already decided to include Rs. 80 crore under the Annual Plan for the coming year for price control against Rs. 10 to Rs. 20 crore provided in the previous years.

He announced that the State government proposed to extend the scheme for supply of rice at Rs. 2 a kg to 23 more categories of workers irrespective of whether they were living above or below the poverty line. They will include traditional workers, lottery agents, autorikshaw drivers, tailors, dairy farmers and painting workers besides elders and the disabled.

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