By TIOL News Service

NEW DELHI, JULY 05, 2014: ALTHOUGH the global food prices are on the slide and there has been a bumper production of agri commodities in India but, much to the chagrin of the Modi Sarkar, the prices of food items have been on the rise. This clearly shows hoarding at some level, says the Finance Minister, Mr Arun Jaitley. The FM said that some system have to be evolved to anticipate such rise and plan actions in advance. He expressed the hope that a joint action plan will be chalk out by the Conference.

He emphasized the importance of coordinated action between the Central Government and the States in tackling the phenomenon of increase in food prices. He noted that the conference provides a platform to draw up an action plan to take specific preventive measures to arrest price rise particularly of vegetables, pulses and other food items of common consumption.

Mr Ram Vilas Paswan, Minister of Consumer Affairs, Food and Public Distribution while noting that prices of perishable commodities do increase between July and November, stated that it is important to take action to prevent hoarding and black marketing as well as to strengthen the supply and distribution of essential commodities during this period.

The conference witnessed participation from all states and union territiories. Twenty five ministers and the Lt. Governor of Delhi addressed the conference outlining the action being taken at the level of the states and made important suggestions for strengthening the efforts to ensure availability of essential commodities at reasonable prices.

Mr Paswan said that checking food inflation has become a priority agenda for the Government. He said that there is need to put in place a preventive strategy to minimise the adverse impact of various factors including late monsoon on the prices and availability of essential food items. “We have to be well prepared with an advance co-ordinated strategy in collaboration with all the State Governments”, he said.

Expressing concern over reported hoarding, Mr Paswan said that tough action is required by the States against those indulging in illegal hoarding and black marketing. Setting up of fast track courts for handling cases of hoarding and black marketing should be considered. While improving agricultural productivity is crucial for increasing the overall availability of essential food items, removal of any restrictions on their free movement to the final consumer are equally important for checking any undue speculative activities leading to hike in prices. This is a battle which has to be fought jointly by the Centre and the State Government and with a strong will and commitment if we have to ensure both availability and price stability, he said.

Delivering his address the Agriculture Minister, Mr Radha Mohan Singh said that artificial shortage created by hoarders is responsible for increase in prices of some of the food items. There is need to improve supply chains and storage facilities for smooth supply of perishable commodities such fruits and vegetables. He asserted that there is urgent need for market integration, improved market infrastructure and better market information. He underlined that there has been continuous increase in agriculture production so there be no reason for recent increase in prices of these commodities; Still Government has taken several steps to check it.