Telangana worried about rising commodity prices

Hyderabad: Alarmed at the rising prices of essential commodities, the Telangana state government plans to cap retail prices of essential commodities to contain abnormal hikes.

The Central government recently amended the Legal Metrology Rules 2011 and empowered states to fix retail prices. The state government has decided to implement the amended rules in toto and, for the first time, frame its own set of rules to fix retail prices.

Civil supplies minister Etela Rajender said the government would not interfere in the day-to-day fixing of prices. “It will intervene only when the increase is on an abnormal level. The retail price fixed by the government will be applicable to essential commodities sold in both packaged and loose forms,” he said.

The state government is concerned about the rising prices of essential commodities like rice, pulses, sugar and onion over the last two years, not the least because it increases the government subsidy.

The government has spent nearly Rs 300 crore to subsidise these food items in the last two years through Rythu Bazaars and special counters across the state.

This has, however, benefited only a small percentage of consumers who had easy access to the facilities.

Onion prices have fallen drastically this year, but the price of rice, some varieties of pulses and vegetables has been increasing of late. The government wants to intervene before they reach abnormally high levels.

Section 2 of the Essential Commodities Act, 1955, which deals with powers to control production, supply and distribution of essential commodities, empowers the Centre to ask the states to act. States can take steps to fix the prices at which essential commodities should be bought or sold. The power has now been delegated to states.

The Centre's recent notification says, “If and when the retail sale price of any essential commodity is fixed and notified by the competent authority under the Essential Commodities Act, 1955, the same shall apply.”