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States equally responsible for reining in price rise: Centre

The government plans to send teams to Myanmar and Africa to scout for pulses and could also consider pumping in more foodgrain into the market, to counter food inflation’s rising trend.

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“During discussions, it was found that the demand and supply gap as far as pulses are concerned can only be managed by import, hence the decision to procure from Myanmar and Africa”, sources said.

Steps to check food inflation as well as efforts being taken to boost supply of pulses through its newly-created buffer stock and also from imports are likely to be discussed.

The Centre has also tried to shift a part of the blame on price rise on states, saying that they are also equally responsible for keeping the rates of essential commodities under control.

At the meeting, Food Minister Paswan briefed his colleagues that while a pulse buffer stock is ready, the response from many states has not been encouraging. Production is estimated to be 17.06 mt in the 2015-16 crop year (July-June), while demand is pegged at 23.5 mt.

The government is also keen to work out joint strategies with states on the price rise front and sought urgent steps on adequate procurement and actions against hoarders. Union Parliamentary Minister Venkaiah Naidu was also seen at the meeting. It is also importing pulses through state-owned trading agencies like MMTC.

Andhra Pradesh, Tamil Nadu and Telangana have lifted pulses from the buffer stock. So far, 38,500 tonnes of lentils have been contracted for import.

India’s retail inflation also rose for the second straight month in May to 5.76 per cent from 5.47 per cent in the month before due to a sharp spike in food prices, Consumer Price Index (CPI) data said on Monday.

Earlier today, Food Minister Paswan flagged off a mobile van to distribute “tur dal” in Delhi at Rs. 120 per kg. Even Mother Dairy’s Safal and Kendriya Bhandar in Delhi have also done the same.

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“In a federal structure, states have equal responsibility in controlling prices”, he said. Asserting that the Centre is “serious” about the price rise issue, Paswan said, “We have created a buffer stock and have asked states to place their requirement for retail distribution”.

Arun Jaitley