Slide in price rise doesn't deflect Oppn ire on govt

A sharp fall in the food inflation for the week ended November 26 notwithstanding, the government drew a barrage of attack on Thursday from the Opposition benches in Parliament. The BJP-led alliance and the Left flayed the UPA regime for not being able to tackle the issue of price rise on a long-term basis, even as finance minister Pranab Mukherjee attributed the fall in the rates of food articles to steps taken by the present dispensation.

Mukherjee, replying in the Rajya Sabha to a debate on price rise, said many essential commodities had either become cheaper or rose only marginally in the last two years.

The retail prices of 30 essential commodities, including rice, wheat and pulses, have fallen or have registered only a marginal increase during the past two years, he added.

“.... It is not correct to say that the government has not done anything,” Mukherjee said. “If the government had not done anything, prices would not have come down. Prices do not remain static.”

Not satisfied with his reply, the Opposition staged a walkout.

In the Lok Sabha, the BJP asked the government to quit if it had not devised a way out of the current situation of escalating prices.

BJP’s Sushma Swaraj, who is leader of the Opposition in the House, said it was the duty of the government to tackle price rise. “...You find a way. If you cannot, leave the chair. And then, we will show the way,” she said.

Sushma blamed “wrong” economic policies and corruption in government behind price rise. “The CAG (Comptroller and Auditor General) has exposed six scams worth crores of rupees. There are 60,000 tonnes of foodgrain rotting in the godowns; while the government has taken a loan of Rs 53,000 crore.... The RBI has increased interest rates 13 times,” she added. Swaraj also accused the government of “doling out” figures and statistics when the “hungry actually need food”.

Referring to last month’s Cabinet decision on allowing 51 per cent FDI in multi-brand retail, the BJP leader said even US President Barack Obama was supporting “US small business Saturday” where people buy things from small shops.

Inflation can be curbed if the money stashed away in bank accounts abroad was brought back, she added.

CPI leader Gurudas Dasgupta, who initiated the discussion, said the present respite from inflation was only seasonal. “The government should not be satisfied.... The panorama of price rise has not been eliminated,” he added.

On his part, Mukherjee sought support from the Opposition to pursue the reforms agenda. “In 2004, you were in the government... You knew what kind of policy measures are to be taken... Many of the measures which you initiated, including PFRDA, we adopted,” he noted.

“My only request would be that this is the baby that you gave birth. Do not leave it in bath water. Let me carry it on to maturity, because reforms are a continuing one.”