Lucknow:
The recent rise in sugar prices has now led to a full blown war of words between chief ministers and Agriculture Minister Sharad Pawar. On Thursday UP chief minister Mayawati and Bihar chief minister Nitish Kumar blamed the Centre for the price rise while responding to Pawar putting the blame on the states for the crisis.
"Wrong economic policies of the Centre are responsible for the price rise. The Centre should stop holding state governments responsible for price rise. Hike in fuel prices by the Centre is responsible for it. The Centre did not take any action to curb price rise at the right time," said Mayawati in Lucknow on Thursday. The UP chief minister has also threatened a nationwide agitation against the Centre on this issue.
While Nitish Kumar said: "Whenever the Congress government comes in power the price rise happens in the country. Whenever there is non-Congress government, then we have controlled the price rise."
On Wednesday, Pawar said that sugar prices had leapt because of the UP government's policies.
At the heart of the war lies Mayawati's decision to ban imported sugar in her state. "Our mills will first refine raw sugar sold by our farmers. Sugar prices are sky-high because of the wrong policies of Centre," Mayawati has said.
For two months, close to 2 million tonnes of imported raw sugar have been lying at ports.
The Centre allowed raw sugar to be imported at zero duty to help India overcome its current crisis.
But Uttar Pradesh has banned its mills from processing this sugar. That's a protectionist move by Mayawati to help sugarcane farmers in her state, who are an important votebank. "Had they (millers) processed, an additional 2.5 lakh tonnes would have been made available per month and this would have brought down the prices," said a bitter Pawar.
Mayawati's ban has contributed to the shortage of sugar across India, driving prices up by close to 50 per cent in some states.
With Mayawati refusing to budge on that ban, the union government has now allowed mills in other states to process that raw sugar. Once that's done, the supply of sugar will increase.
The Centre has also decided to allow duty-free imports of refined sugar till December 2010. State governments like Delhi have also been asked to waive the Value-Added Tax (VAT) on sugar to help reduce prices.
According to a study by Assocham's 'Eco Pulse,' prices of commodities rose by more than 300 per cent in comparison with the per capita income in the past one year. The prices of essential commodities such as wheat, pulses, tea, coffee, sugar, spices and non-vegetarian products increased at an average of 19 per cent. However, the household incomes have increased at the rate of 6 per cent.
"Wrong economic policies of the Centre are responsible for the price rise. The Centre should stop holding state governments responsible for price rise. Hike in fuel prices by the Centre is responsible for it. The Centre did not take any action to curb price rise at the right time," said Mayawati in Lucknow on Thursday. The UP chief minister has also threatened a nationwide agitation against the Centre on this issue.
While Nitish Kumar said: "Whenever the Congress government comes in power the price rise happens in the country. Whenever there is non-Congress government, then we have controlled the price rise."
On Wednesday, Pawar said that sugar prices had leapt because of the UP government's policies.
At the heart of the war lies Mayawati's decision to ban imported sugar in her state. "Our mills will first refine raw sugar sold by our farmers. Sugar prices are sky-high because of the wrong policies of Centre," Mayawati has said.
For two months, close to 2 million tonnes of imported raw sugar have been lying at ports.
The Centre allowed raw sugar to be imported at zero duty to help India overcome its current crisis.
But Uttar Pradesh has banned its mills from processing this sugar. That's a protectionist move by Mayawati to help sugarcane farmers in her state, who are an important votebank. "Had they (millers) processed, an additional 2.5 lakh tonnes would have been made available per month and this would have brought down the prices," said a bitter Pawar.
Mayawati's ban has contributed to the shortage of sugar across India, driving prices up by close to 50 per cent in some states.
With Mayawati refusing to budge on that ban, the union government has now allowed mills in other states to process that raw sugar. Once that's done, the supply of sugar will increase.
The Centre has also decided to allow duty-free imports of refined sugar till December 2010. State governments like Delhi have also been asked to waive the Value-Added Tax (VAT) on sugar to help reduce prices.
According to a study by Assocham's 'Eco Pulse,' prices of commodities rose by more than 300 per cent in comparison with the per capita income in the past one year. The prices of essential commodities such as wheat, pulses, tea, coffee, sugar, spices and non-vegetarian products increased at an average of 19 per cent. However, the household incomes have increased at the rate of 6 per cent.
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