Govt to maintain reasonable price stability: Prime Minister

NEW DELHI: Prime Minister Manmohan Singh on Wednesday said the government is committed to maintaining "reasonable" price stability at 4-5 per cent, but it will not be at the cost of farmers.
    
"We are committed to reasonable price stability but we will not be a party to maintain so-called price stability by neglecting the prices that ought to be paid to our farmers," Singh said in Lok Sabha while replying to the debate on President Pratibha Patil's address to Parliament.
    
Singh said the NDA government had maintained the "modicum of price stability" by depressing farm prices coupled with low international crude oil and food prices.
    
However, despite international crude oil prices rising from 36 dollars a barrel in 2004, when the UPA came to power, to over 100 dollars a barrel, the government raised diesel and petrol prices marginally and maintained kerosene prices at the same level.
    
"We are committed to maintaining reasonable price stability despite an adverse international environment," he said, adding that the government had raised farm prices "handsomely" while not increasing the foodgrain prices for families living below or above poverty line in the last four years.
    
Pointing out that prices of imported foodgrains and vegetable oils were "sky-rocketing", he said the government would take effective steps to maintain prices to safeguard the weaker sections.