Seeking greater involvement of States in combating rising prices, Prime Minister Manmohan Singh on Thursday set up three working groups of chief ministers even as he cautioned that increased output alone will not ensure food security for all.

The Prime Minister met chief ministers and other representatives of 10 states to discuss rising prices of essential commodities and announced setting up of the working groups that will examine in depth the issues of agriculture production, public distribution and reduction of prices.

The group on agriculture production will be headed by Haryana chief minister Bhupinder Singh Hooda, the one on consumer affairs will be led by Gujarat chief minister Narendra Modi and Planning Commission deputy chairman Montek Singh Ahluwalia will head the group on food and public distribution.

The working groups are required to submit their reports within two months.

Addressing the meeting of core committee of CMs and Cabinet ministers on prices, Singh said the primary concern of the government is to insulate the poor and the vulnerable from rapid rise in prices of food and essential commodities.

He emphasised that food production needs to grow at higher rates but cautioned that higher output alone will not be enough to achieve food security for all.

"For that, we need to look at strengthening of public distribution system to prevent large scale leakages and diversion of foodgrains and also to remedy exclusion and inclusion errors in identification of below poverty line beneficiaries," he said.

The Centre'e decision to involve the states in dealing with the price situation comes at a time when there is a blame game on rising food inflation that has soared to 17.70 per cent.

Gujarat chief minister Narendra Modi after coming out of the meeting said, "It seems that government of India does not have any concrete solution to deal with the price situation."

Chief minister of Punjab, West Bengal and Bihar are also members of the working group on farm production, while CMs of Andhra Pradesh, Maharashtra and Tamil Nadu are part of consumer affairs working group. Chhattisgarh, Assam CMs and PMEAC charmian C Rangarajan are members of the food and public distribution group.

Addressing the media after the meeting, agriculture minister Sharad Pawar said there were certain suggestions made by some chief ministers regarding the Food Security Bill. But mainly everybody suggested that the list of Below Poverty Line (BPL) should be finalised at the earliest, he said, adding that working group headed by Ahluwalia would look into this issue.

Asked about price situation, Pawar said "by and large trend of foodgrain prices are going down... see the retail prices of sugar and other items, prices are going down."

In fact, he said "as agriculture minister I am getting complaints from some of the states like UP that the wheat prices are going down below MSP and that's why government of India should enter the market and at least try to assure minimum support price. This is the trend."

Fortunately, in Rabi season the production has been substantially improved. The area and crop production of wheat will be better than the last year, pulses production has also improved and that's why there is a downward trend, he added.

Giving details of three working groups, Pawar said the first group headed by Hooda will look into how to increase agricultural production and productivity including long-term policies for sustained agricultural growth and issues relating to inputs like seeds, fertilisers.

The group headed by deputy chairman Planing Commission will find out ways and means for better and effective delivery of essential commodities to the vulnerable sections of society and augmentation of warehouses and storage capacity.