Firm on reforms, with better regulation

Market reforms in the farm and food sector cannot be reversed but proper 8220;regulation8221; to protect the vulnerable sections must soon...

Market reforms in the farm and food sector cannot be reversed but proper 8220;regulation8221; to protect the vulnerable sections must soon be in place. To this effect, the Centre is expected to soon announce several measures balancing the interests of producers and consumers.

This is the key conclusion after a string of meetings on the price rise within the Congress8212;beginning with the CWC and the AICC office-bearers8212;and at today8217;s conference of party Chief Ministers also attended by the Prime Minister and the Finance Minister.

On the anvil: a 8220;mechanism to monitor the fluctuations8221; in retail prices of essential commodities in cities and big towns and a regulatory body for commodity exchanges. The monitoring will be done by food and consumer affairs ministry.

Several Chief Ministers who participated in today8217;s meeting are of the view that a return to old regime of control and licence is not the solution. So the party rejected demands from the Left and a section within to ban forward trading in commodities.

The CMs8217; meeting concluded that 8220;forward trading in foodgrains and other essential commodities should be better regulated to curb excessive speculation.8221;

Andhra Chief Minister Y S Rajashekhar Reddy said the party did not oppose free movement of produce or forward trading. 8220;Forward trading has meant good remuneration for farmers. We have to balance the interests of the farmer and the consumer,8221; Reddy told The Indian Express.

Meanwhile, the party wants the government to take 8220;dehoarding8221; measures. The Centre will issue an order under the Essential Commodities Act of 1955 empowering the state governments to act against hoarders.

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The new order will modify an order of the NDA government under the same act that allowed to 8220;freely buy, stock, sell, transport, dispose, acquire. use or consume any quantity,8221; of declared items. Party sources, however, pointed out that increase in pulse prices is not due to hoarding but reduction in production. In any case, pulses are not in the list of the NDA order and any state government can take dehoarding action on them, party sources said.

The inevitability of the market accepted, the Congress called for strengthening and streamlining the public distribution system. Party spokesperson Rajiv Shukla said president Sonia Gandhi has instructed all CMs to ensure 8220;proper functioning of PDS and take credible action against hoarding.8221; At the CWC meeting last week, members had demanded 8220;tangible action, such as raids and crackdown on blackmarketing.8221;

The Prime Minister will call a meeting of all chief ministers before Parliament begins on July 24 to discuss these issues and arrive at a consensus.