India News and Features Alliance (INFA) - Directions to Congress CMs:RISING PRICES CAUSE ANGER, CONCERN, by Insaf,6 July 2006

Rising prices of essential commodities, which have triggered both anger and concern across the States, dominated the national scene during the past week. Congress President Sonia Gandhi discussed the problem in depth, first with senior colleagues at a meeting of the Congress Working Committee (CWC), and next with the party’s Chief Ministers at a damage-control conclave in New Delhi on Tuesday. All the CMs have been directed to quickly launch schemes to control inflation in their respective State as it has hit hard both the aam aadmi and the UPA’s popularity. They have been specially asked to strengthen the public distribution system and to reach the common man, especially the BPL (below poverty line) families. Simultaneously, they have to open more fair prices shops and take stern action against hoarders of consumer goods.

The Chief Ministers were unanimously of the view that the sudden spurt in the prices of grains and pulses was mainly caused by low procurement, hoarding and speculation in forward trading. The procurement of foodgrains was low to the tune of about five million tonnes during the current year. It was unprecedentedly low in U.P. and Andhra Pradesh. The latter’s Chief Minister Rajasekhara Reddy attributed this to low minimum support prices, which he wanted raised. Interestingly, the CMs unanimously held the NDA Government responsible for it through its order of 2002, rescinding all control orders under the Essential Commodities Act. They want the order reconsidered and the State Governments empowered to intervene effectively in cases of hoarding of essential commodities.

Jammu & Kashmir is experiencing a sudden spurt in violence and increasing infiltration attempts from across the Line of Control (LoC). Especially worrisome for both New Delhi and the State Government is the new terror trend. Most of the bloody attacks during the recent weeks have been high profile, aimed at soft targets, including tourists, minorities, small-time labourers and, above all, security installations. The State Police chief holds Islamabad responsible for it as “there cannot be any movement near the LoC without the Pakistan Government’s knowledge”. The J&K Chief Minister, Ghulam Nabi Azad, has therefore justifiably and appropriately drawn Gen. Musharraf’s attention to this development. He has hoped that the Pakistan President would keep his solemn commitment to India and not allow infiltration to continue.

Note has specially been taken of the fact that there are more and more instances of grenade attacks nowadays instead of the earlier bomb blasts. In fact, the Army Chief, Gen. J.J. Singh, convened a high-level meeting on the subject in Srinagar last week. This meeting decided to intensify operations to unearth grenade dumps and identify the supply-chains across the State. The meeting, attended by Union Home Secretary Duggal, Army Commanders based in the State and Chiefs of BSF, State Police and the intelligence units, also decided to concentrate on apprehending the grenade carriers and those recruited by the jehadi groups to lob them at chosen targets. A detailed assessment has been made of the causes of rising infiltration attempts, despite increased vigil all along the LoC and the international border.

Prime Minister Manmohan Singh’s much-hyped visit to the rural areas of Vidarbha was not merely to provide a Rs.3,750-crore package of relief measures for farmers of six districts in the region. It was equally to unveil the UPA Government’s roadmap for the development of the rural areas, especially the agricultural promotion programmes which have not received the attention they deserved after the early 1980s. Based on the report of a fact-finding team of the Planning Commission on the farmers’ plight, the Prime Minister announced several programmes at the end of his two-day visit to Vidarbha. These include higher procurement price, writing off of debts, assured supply of good quality seeds and close monitoring of credit institutions. However, it is still to be seen how far and how soon the PM’s package begins to yield results. Seven farmers ended their lives within three days of the PM’s announcement.

Meanwhile, Vidarbha itself continues to suffer, as discovered by the Planning Commission’s team. Its backlog of investments totals 14,434.64 crore. This clearly shows that the region has not got its share of Government funds for several years, compared to the Marathwada region and the rest of the State. Ironically, Vidarbha was solemnly assured at the time of its merger with Maharashtra that it would receive its due share of funds vis-à-vis the other regions under Article 371(2) of the Constitution. Vidarbha’s backlog of irrigation alone has more than doubled during the last 20 years in percentage terms from 38.05 per cent. In sharp contrast, the backlog for the rest of the State declined from 31.1 per cent to 4.7 per cent. Shockingly, the provision of agricultural pumpsets in Vidarbha is less than 20 per cent of over two lakh pumpsets installed in Nashik district alone!

New calculated moves have been made on the electoral chessboard in U.P. While Chief Minister Mulayam Singh Yadav is announcing sops after sops in an obvious bid to keep his vote banks in good humour, the Congress High Command is concentrating on strengthening its popularity at the grassroots. Mulayam Singh, who announced a few days ago an increase in the unemployment allowance from Rs.500 to Rs.1,000 per month if voted to power again, has now promised an unusual allowance of Rs.500 per month to those who suffered excesses during the emergency of 1975-77. The Congress High Command, on its part, has effected massive changes in its district and city units. About 85 per cent of the district and city unit presidents have been changed, making place for new faces in the first major overhaul after 17 years.

Karnataka’s political scenario is suddenly changing once more. Initially, the unholy alliance between the Congress and its rival JD(S) following the fractured verdict in the 2004 Assembly poll ended in a disaster. The marriage of convenience for power between the JD(S) and the BJP is also heading for the rocks. A fresh realignment of forces and leaders is on the cards and so also another election to the Assembly even if Chief Minister H.D. Kumaraswamy manages to survive longer than expected in the company of what his father, former Prime Minister Deve Gowda chooses to label as the “communally evil BJP”. Former Deputy Chief Minister Siddaramaiah is all set to join the Congress with eight of his MLAs. Once this happens, none of the three major parties --- the Congress, the BJP and the JD(S), will be able to cobble up a majority. Dissolution of the Assembly will then become unavoidable.

The new Left Front Government in Kerala, led by the veteran CPM leader, V.S.P. Achuthanandan, has prepared a legislation to institutionalize monitoring and control of farm loans and provide a support mechanism during any crop failure. This has been done to cope with a spiraling agrarian crisis that has been driving hundreds of farmers to suicides. The legislation is designed to end the current knee-jerk approach and resolve the farmers’ problems by offering loan waivers, moratoriums, compensations and subsidy hand-outs. At the same time, the State Government has sanctioned Rs.50,000 each to the families of 137 farmers of the dead who have committed suicide It is also trying to get the Banks to write off all farm loans upto Rs. one lakh. ---INFA