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April 27, 2000

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Govt says 'no' to rollback of price hike

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The government today turned down the opposition demand for a rollback of the hike in prices of essential commodities available through the Public Distribution System asserting that the subsidy had been re-structured, not reduced, to benefit the targeted poorer sections better.

As Consumer Affairs and Public Distribution System Minister Shanta Kumar concluded his reply to the discussion in the Lok Sabha, Deputy Speaker P M Sayeed adjourned the House. However, agitated opposition members belonging to the Congress and other parties announced they were walking out.

Five major allies of the ruling coalition joined the opposition in demanding a rollback of the price hike which they said would hit the population below the poverty line.

The Trinamul Congress, the Shiv Sena, the Telugu Desam Party, the Janata Dal (United), and the Biju Janata Dal voiced their anger at the adamant attitude of the government during the discussion which went on late into the night.

Shanta Kumar said that despite the hike, the subsidy had gone up by Rs 2,270 crore. He said the increase of allocation per family from ten to twenty kg of foodgrains meant that each family would save up to Rs 37 which would have been spent for purchasing additional foodgrains in the open market.

UNI

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