Replying to the debate on Price rise in the Lok Sabha the finance minister Pranab Mukherjee said all emerging economies like China, Sri Lanka are facing this problem.
The two-day discussion on price inflation in Lok Sabha, the lower house of the Indian Parliament, ended on Thursday with the House expressing concern over the rising trend in prices and the need to curb it.
Through a division, the House negated the amendment moved by CPI leader Gurudas Dasgupta which wanted a reference to the “failure” of the government to curb food price inflation.
To sum up both the NDA and the ruling UPA coalition supported the compromise resolution expressing concern over the rising prices and the need to curb its trend.
The Union Finance Minister, Pranab Mukherjee while replying to the debate said the government was moving in the direction of decontrol of diesel price on which it has taken a view in principle and it has no other proposals.
Attributing high prices to external factors, the government he said that the government was working to moderate food inflation to 5% from over 8% now without sacrificing growth. He gave details of various steps the government had taken to rein in inflation but did not outline any further strategy in this regard.
“Growth with moderate rate of inflation… that is what we want to achieve,” Mukherjee said in nearly an hour-long reply which left NDA “disappointed” and was followed by a walk out by the BSP, SP, BJD, AIADMK and Left parties.
He pointed out that the food inflation had come down from 22% in February, 2010 to 8.3% in July this year, he said, “I am not accepting it. This is not the bench mark.”
Mukherjee said the comfortable level of food inflation was five per cent but six to seven per cent can be tolerated.
Responding to the demand for removing subsidy on diesel used by cars, cell phone towers Mukherjee said, “We can accept the suggestion and try to work out what mechanism could be found out so that this section (passenger cars owners) are not subsidised.” On Wednesday the JD(U) leader Sharad Yadav had suggested to divert the subsidy on diesel used by luxury cars and cell phone towers to farmers. He said that the government was pursing “jobless growth” pattern and corporate model of development.
The BJP leader Yashwant Sinha moving the resolution on Wednesday alleged that the government had not been able to control price inflation when the food was rotting in government-owned warehouses. He suggested distribution of the food to the poor.