Centre asks states to take up effective market intervention to check prices

The centre has asked the states to take up market intervention effectively and timely to check prices of essential commodities.

Addressing a meeting of food ministers of northern states in New Delhi today, minister of state for consumer affairs, food and public distribution KV Thomas said while the centre will commit funds for the scheme, state government will have to use the provisions of Essential Commodities Act and the Prevention of blackmarketing and Maintenance of Supplies of Essential Commodities Act to check malpractices either in PDS or in the open market.

He said states should ensure adequate availability of stocks in the open market by reviewing the stocks limits of the commodities time to time.

Urging the states to make efforts to lift more foodgrains allotted to them under PDS, Thomas said that the centre has allocated 632.46 lakh tonnes of foodgrains, 13 per cent more this year. This includes additional allocation of 50 lakh tonnes for BPL families. He said that the state should lift the additional allocation in full and ensure that it reaches targeted beneficiaries.

Briefing the states about efforts being made to increase storage capacity for foodgrains, he said the department of food has formulated a scheme for construction of additional storage through private entrepreneur as well as by the state undertakings. Significant progress has been made in this direction, he said, adding that the states should provide all possible assistance to the nodal agencies nominating in their area for construction these new capacities.

The minister expressed the hope that sugar prices would remain at reasonable level as sugar production in the current season is expected to increase significantly.