Finmin failed to address price situation: Par panel

A Parliamentary panel today pulled up the Finance Ministry for its failure to take timely action to contain inflation and asked the government to take immediate steps to provide relief to common man reeling under rising food prices.

It also suggested amending the Essential Commodities Act to check hoarding and speculation.

"The Ministry of Finance...Has obviously failed to intervene timely and squarely address this burning issue (price rise) with due seriousness," said the Standing Committee on Finance in its report on inflation.

The government, the Committee headed by Murli Manohar Joshi added, "should overcome its inertia and come to grips with the reality of unabated rise in the prices of essential commodities".

Noting that the food inflation, which captures rising prices of cereals, wheat, rice, sugar pulses and vegetables, touched more than a decade's high of 19.05 per cent in November, the Committee suggested that the government should formulate a comprehensive food pricing management policy to provide relief to common man.

Food inflation, according to the data released earlier in the day, further rose to 19.95 per cent for the week ended December 5.

The panel also asked the government to formulate a separate index on essential food items -- Food Price Index -- to accurately reflect the prevailing price situation in essential commodities.