
MUMBAI, DECEMBER 29: The Congress-led Democratic Front is gearing up to give the people of the state a New Year shock. As on December 31, 1999 the state will witness a steep hike in the prices of five essential commodities supplied through the Public Distribution System.
“The cabinet has discussed the pros and cons of the scheme to provide five essential commodities at a fixed rate. Due to the resource crunch, we have decided to scrap the scheme from December 31, 1999,” a senior Minister said.
As per the decision of the DF government, rice will now be available at Rs 10.95 per kg as against the Rs 7.90 under the existing scheme, while wheat will be priced at Rs 8.25 against the present rate of Rs five and sugar will cost Rs 12 per kg instead of Rs 9.05 per kg.
The prices of these goods were frozen following an election eve promise by Shiv Sena chief Bal Thackeray in 1995. He had declared that if the Sena-BJP alliance came to power in the State, it would freeze the prices of these commodities for five years. True to his promise, when Manohar Joshi was installed as Chief Minister, a comprehensive plan was chalked out to provide the commodities at the June 1995 prices. Thus, under the scheme, rice, wheat, sugar, dal and edible oil were being supplied at a fixed rate and an annual provision of Rs 517 crore was made to stabilise the prices.
The minister stated that this scheme was being scrapped "in the larger interests of the economy of the state". While Chief Minister Vilasrao Deshmukh has stayed all the decisions taken by the Sena-BJP government after coming to power, this was the first scheme to be scrapped, he added.
“There was a proposal to scrap the scheme even during the Sena-BJP rule. However due to obvious political reasons, the former government did not give it up despite the heavy burden on the state exchequer,” the minister added.
“Even Sena and BJP ministers were opposed to the plan, but since the promise had been made, they stood by it,” the minister explained.
However, the proposal to scrap the scheme does not seem to have gone down well with quite a few ministers. “The decision should not have been reversed. Now will have to face stiff opposition, particularly in the rural areas,” complained a senior Congress Minister.
An NCP minister felt the decision would help better the image of the Sena-BJP alliance. “We should have waited for some more time instead of reversing the decision on the eve of the New Year,” the Minister added.


