Is the central government clueless about price rise?

ashishs

Ashish Sharma | February 12, 2010



On a Mahashivratri when milk prices have been hiked yet again within a few months, it is a matter of concern that prices might rise substantially even from here on by summer. Just as in the case of other essential food products, milk prices have already risen beyond the reach of the average consumer. Meanwhile, the central government has been busy either trying to wish away the crisis by promising an end to the upward spiral every few days, or blaming the global demand-supply mismatch, or even blaming the state governments that they have failed to do their bit.

What the central government has not done is to fix the responsibility within its ranks. Is it a supply side issue that needs to be addressed by the food ministry and the agriculture ministry? Is it a monetary policy issue that needs to be handled mainly by the finance ministry? Or is it an emergency situation that requires all ministries concerned to work in tandem under the direct supervision of the prime minister himself?

It would help, of course, if anybody in the government could answer in the affirmative to any of the questions raised above and get down to addressing the issue. Which is why, the more fundamental question remains: is the central government clueless about price rise?

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