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CMs' meet evolves multi-point strategy to check sharp price movements

The chief ministers conference, convened by the prime minister Atal Bihari Vajpyee today in New Delhi, resolved to take up the following measures to contain price rise and to regulate supplies of essential commodities.

National Crop Forecasting Centre will be set up immediately under the ministry of agriculture to assess the production.

The Essential Commodites Act would be immediately reviewed with a view to examine as to how the state administration can be empowered for effective action against hoarders and black marketeers.

A group of officials under the cabinet secretary would be constituted to make suitable recommendations to the Act and to evolve an enforcement mechanism.

The state administrations would utilise the amended Act to take effective action for curbing malpractices relating to essential commodities.

The Cabinet Committee on Prices would be restructured to make it more functional and ensure timely corrective action.

A special cell would be set up under the cabinet secretary to monitor and analyse price data and trends of essential commodites.

A joint monitoring mechanism for prices and production will be established under the chairmanship of the cabinet secretary which will hold quarterly meetings with chief secretaries of states.

The state government will initiate urgent steps to implement a programme for establishment of efficient and cost-effective cold storages to minimise high percentage of waste.

The finance ministry will examine the possibility of providing soft loans to states from the banking system for improving these facilities.

The Central government will provide necessary funds on matching basis for undertaking market intervention and states will distribute such commodities through the existing mechanisms of Public Distribution System.

Having regard to fiscal deficit of the Central government, as well as those of states, concerted efforts will be made to augment revenues, realise user charges fully and curb unproductive expenditures.

The items included in the Central and state governments under PDS will be reviewed from time to time.

States will take immediate action to remove restrictions including informal restrictions, if any, on the movement of essential commodities to ensure free flow of such commodities.

UNI

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