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Wednesday, July 29, 1998

Opposition walkout over price rise

EXPRESS NEWS SERVICE  
NEW DELHI, July 28: The entire Opposition walked out the Rajya Sabha today in protest against what it felt was Finance Minister Yashwant Sinha's inadequate reply to a debate on rising prices.

Sinha's statement was not to the satisfaction of the Opposition which complained that he had not spelt out the nature of the steps the government proposed to take to bring down inflation.

It also wanted him to pinpoint the reasons for the growing inflation.The minister's observation that the price rise was due to several factors, the most important being the failure of rabi crops and early varieties of rice, did not wash with the Opposition.

It wanted him to explain how the prices of medicines which were not influenced by any seasonal factors had also gone up.

Sinha said rice crops start coming into the market by July-August but this year the failure of these crops had led to spiralling prices. Moreover, there was a shortfall in production of potatoes by 60 lakh tonnes, onions by six lakh tonnes and oilseeds by13 lakh tonnes.

As for the steps taken by the government, he informed the House that the government had written to the state governments to make arrangements for speedy lifting of wheat, rice and sugar from the Central stocks. It had also asked the states to initiate stern action against unscrupulous traders and hoarders.

Sinha said the government had decided to import 1.5 lakh tonnes of edible oil to improve the domestic supply situation.

The import by private traders this year had fallen because of high prices in Malaysia and Indonesia.

He also assured the House that government expenditure would not be allowed to rise.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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