Coming to prices, this question we have discussed many times, even during’ the question hour. I have explained the reasons for the price rise and the steps we have taken to deal with the same. As I said, the prices started rising from the middle of 1969 onwards. The main reason was the shortage of industrial raw materials like cotton, oilseeds etc. Naturally, we had to take a series of fiscal and monetary policy decisions which helped us to reduce the prices and the prices have been reduced in the month of March, particularly food prices.

Now the question is : what will be the effect of the taxes on the prices. I will explain that. We have taken many measures in this particular matter. Sir, if you will allow me, I can give a long list of the administrative steps we have taken in this matter. In the case of oilseeds the price index has come down from 233 in January 1971 to 211.8 in March 1971. The process was assisted by tightening of control on the bank advances against vegetable oils, oilseeds and Vanaspati towards the end of January. Imports of soyabean oil for the hydrogenated oil industry have been continued at a level of approximately 100,000 tones per annum, supplies of rapeseed from Canada further helped to argument the availability of oil for edible purposes. The overall shortage of oils and fats has also been sought to be taken care of through imports of mutton tallow for the soap industry.

An import policy has been framed with the object of ensuring that actual users do not suffer from lack of essential steel. While exports are being regulated, actual users have been granted an increase in their import quotas. Bulk imports of scarce varieties of steel, such as plates and sheets, have been arranged. The projected import of steel for 1970-71 was of the order of 600,000 tonnes as against an import of 4,25,000 tonnes in 1969-70.

A Bureau of Industrial Costs and Prices was set up during the year to review and examine the cost structure of industries referred to it for study, and to recommend prices; a number of references have been made during the year to the Bureau. Administrative control over prices has been continued to be exercised in respect of a number of commodities. The commodities which remained subject to statutory price control during the year included certain varieties of mill-cloth, agricultural tractors, motor cars and scooters, cement, synthetic, rubber, vanaspati, certain fertilizers, kerosene; sugar and industrial alcohol. Sugar was decontrolled very recently. Two additional categories were brought under statutory price control in 1970-71, namely, aluminium and its products, and electric wires and cables. While the prices of the latter are yet to be determined, the prices of aluminum and its products were frozen at the levels prevailing on February 28, 1970 as an interim measure pending the report of a special study group. During the year, prices of drugs and medicines too were brought under a system of comprehensive regulation and control with the coming into effect of the Drugs (Price Control) Order in May 1970. The cost structure of the units manufacturing drugs and medicines was examined by the Tariff Commission and norms for the fixation of fair selling, prices were suggested. Prices of seventeen essential bulk drugs have been announced, and of other drugs have been frozen pending a detailed study. A Drug Prices Review Board has been set up to assist the Government in the fixation of drug prices at reasonable levels.