Prime Minister Manmohan Singh [Images] on Saturday said the Centre and states should not hesitate to take strong measures, including against hoarders and black marketeers, to check the spiraling prices of essential commodities in the wake of delayed and deficient monsoon.

"In short, the contingency plan for crops, drinking water, human and animal health, fodder, etc should be brought into operation without delay and a close watch kept on availability of foodgrains and prices of essential commodities," he said while addressing a conference of state chief secretaries.

Agriculture Minister Sharad Pawar [Images], Cabinet Secretary K M Chandrasekhar and Union Agriculture Secretary T Nanda Kumar were among those who attended the meeting.

Assuring Centre's full support to states regarding any additional assistance that may be required, Dr Singh said "there is need for us to act promptly, collectively and effectively. In no case should we allow citizens to go hungry."

The meeting was called against the backdrop of poor monsoon and the spectre of drought looming large over several parts of the country. The prime minister himself said that 141 districts in the country have been declared drought affected but no state has so far sent a memorandum seeking assistance.

The prime minister referred to the possibility of reduced production of Kharif crops having an inflationary impact on prices of food items in the coming months.

The prime minister said "of late, we have seen a rising trend in the prices of certain essential commodities like pulses, sugar and some vegetables." He said in order to contain the increase in prices of essential commodities, the Central government and the state governments will have to work together and activise the public distribution system, which is an important safety net, especially for the poor, and helps cushion them against price rise.

"We will also have to ensure effective enforcement of stock holding limits and strong action against hoarders and black marketeers," Singh said. He said the country was facing a difficult situation as the monsoons had been delayed and in many places deficient, though some parts of the country have received normal or excess rainfall. Agricultural operations have been adversely affected in several parts of the country, causing distress to farmers and their families.

A deficit of more than six million hectares has been reported in paddy, which is the worst affected crop, Singh said. However, he said, the country was helped by the fact that it was operating against the backdrop of record food production and procurement of foodgrains in both 2007-08 and 2008-09.

To mitigate the adverse affect of inadequate rain, Dr Singh suggested that farmers should look for alternate crop in those areas where paddy cannot be sown and maximise production in traditional crop in those areas which had adequate rainfall.

Asking states to meticulously plan for the availability of seeds, fertilisers and other inputs to farmers for the upcoming Rabi season, he said, "Since the country is deficit in pulses and oilseeds production, this may be a good opportunity to utilise available land by diversifying in Rabi pulses and oilseeds".

Expressing concern over non-utilisation of funds by few states from Rashtriya Krishi Vikas Yojna and National Food Security Mission, the two major schemes for the agriculture sector launched by the Centre, he said the funds meant for the farmers should not be left unutilised due to procedural constraints.

On the food front, Dr Singh said the major challenge was to ensure proper management and distribution of food stocks. He asked states to intervene in the procurement process to supplement the efforts of the Centre.

While the current food stock position was comfortable, there was a need to ensure that this position continues next year as well, he said, adding states should meet their target on the paddy and wheat procurement in the coming season. The prime minister also emphasised on building proper storage capacity in the country.

Image: A labourer walks through a paddy field in a Punjab [Images] village | Photograph: Ajay Verma/Reuters