Kolkata, Dec 25 (IANS) West Bengal Finance Minister Asim Dasgupta Friday said forward trading and relaxation of Essential Commodities Act were the key causes of the current spell of price rise, that has seen India’s annual food inflation top 18 percent.
“During the regime of National Democratic Alliance, when Trinamool Congress was partner, there was a complete relaxation of the Essential Commodities Act. We are trying to bring that in order,” Dasgupta said, talking about the recent food price rise.

“The Union finance minister (Pranab Mukherjee) is fully aware about what is happening. He is fully aware what is going on in forward trading,” he told reporters on the margins of a trade fair organised by the Bengal National Chamber of Commerce and Industry.

His comments came after Mukherjee said state governments should ensure subsidised food grain was given via effective public distribution system, while taking effective steps against hoarding of bring down food inflation.

Mukherjee had said the states’ de-hoarding mechanism should be strengthened to take steps against unscrupulous traders, who create artificial scarcity in a bid to jack up prices, especially of essential items.

Dasgupta said that there was a need for full co-ordinated action between all the states and the centre. “Our Chief Minister Buddhadeb Bhattacharjee had said he has written to the Prime Minister Manmohan Singh on the issue.”