EXCLUSIVE INTERVIEW
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Controlling inflation a big challenge: Kamal Nath
Published on Sun, Apr 20, 2008 at 12:09, Updated on Sun, Apr 20, 2008 at 16:57 in Business section
Tags: Inflation, Price Rise , New Delhi
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New Delhi: Inflation is what's on everyone's mind, including Commerce Minister Kamal Nath. Speaking exclusively to Karan Thapar on CNN-IBN’s Devil’s Advocate he said that the Government is considering the Left's proposal to ban forward trading in essential commodities to arrest rising prices.
He also indicated that the Left's proposal to ban private procurement of wheat could also be accepted.
“State governments will have to take the maximum onus for controlling inflation. In case the states don't act, the Centre won't hesitate in using it's legislative powers to deal with the situation,” he added.
The Minister accepted that although inflation has shown a marginal decline last week. He said the perception or fear of inflation was worse than inflation itself. However he claimed that the present inflation is a consequence of ‘unprecedented growth over the last 4 years’.
However, Kamal Nath admitted the Government needed a series of policies to tackle inflation. He said, ‘There's no one-size fits-all solution for inflation’.
“Within a couple of days the Government would do more but promised there would be no knee-jerk reaction.”
Excerpts from the interview
Kamal Nath: Of course if forward trading is the reason for inflation why won't we do it, we want to control inflation.
Karan Thapar: Another suggestion from the Left is - ban corporates directly buying wheat from farmers, so that the government has access to the full harvest in India and you can build up your buffers - both to protect the poor, and more importantly to control the price - now are you prepared to do that.
Kamal Nath: If we find that our procurement targets are not being met, we will look at restraining the private sector from buying.
Karan Thapar: So once again you have an open mind?
Kamal Nath: Of course, we have been saying that - that the private sector which has come in first we have to look at the Public Distribution System - if we get all our procurements for our PDS, well fine, if we don't we'll have to take more steps.
Kamal Nath: States have to themselves share the burden and the responsibility of controlling inflation.
Karan Thapar: If they are reluctant, can't you make them?
Kamal Nath: Well, in the end we will have to think of steps. You know, there are steps under the Essential Commodities Act, there are steps for steel under 18G of the Industrial Development Regulation Act.
Karan Thapar: Are you prepared to use those?
Kamal Nath: Well, we are not, at the moment but if need be, if we find this failure, if we find this diffidence, if we find this reluctance and if we find that it is not bonafide why will not the central government use it?
Catch the full interview with Kamal Nath on Sunday at 8:30 pm and on Monday at 4:30 pm on Devil's Advocate only on CNN-IBN
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can inflation in india be left to be tackled by free market forces?
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