In the draft, the department has stressed the need to address national and international factors behind price rise. It has also proposed waiving off VAT on essential commodities like edible oil and sugar to control price hike. The draft also envisages introducing ration cards for population below the poverty line.[break]
Participants at an interaction on the draft organized on Monday said state-administered prices of essential commodities go against the open market economy that the country has adopted.
The draft has a provision that allows the government to fix price of essential commodities taking into consideration factors like cost of production, buying price and profit margin for the sellers.
Speaking at the program, Pushpa Ratna Joshi, of National Planning Commission suggested that the department incorporate provisions on products and services along with essential commodities in the policy. “The Price Control Policy should put focus on all kinds of products and services. The government also needs to strictly implement the open market policy,” added Joshi.
Participants held discussions on different issues like the need to establish public distribution system of essential commodities and establish price information centre. They also held discussion on the need to make arrangement for storage of food commodities.
The draft also envisages maintaining effective supply system of essential commodities with the assistance of private sector such as cooperatives.
Anil Kumar Thakur, director general of the Department of Commerce, said the draft policy has proposed that transport of essential commodities should be done through cooperatives.
Realizing that the increasing involvement middle-men is one of the reasons behind rise in prices of essential commodities, the draft proposes using cooperatives as a go-between between farmers and buyers.
The draft also proposes reviewing food subsidy policy and putting emphasis on alternative food production in food-deficit areas.
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