Can State Government Control Commodity Price?

Every political party has been criticizing the ruling Congress party that the Government has failed to control Commodity prices and life of a common man  is becoming increasingly difficult.

Chandra Babu Naidu, the chief of TDP even went on to say the Government doesn't know how to control and he would have put everything in control had been a Chief Minister. PRP plays the same tune that it could make life of common man much easier irrespective of mammoth inflation hike and price hike, but did not offer anything on how it does either.

That brings to the key question, can really State Government control or at least influence the commodity price and inflation? Or its just an election gimmick every party that is not in power can play?

Share your views on this critical question.

We think, the answer is a YES to an extent. But it would be difficult to quantify the impact of  actions taken at a state level on commodity price and inflation that is calculated at National level. But since whatever is calculated at National level is total sum of all state contributions and each state's contribution matters. Particularly, the top tier states like Andhra Pradesh. However the most critical part of the answer is 'how quickly' a state government policy could alter the direction, assuming that the Government or opposition party figure out a way to change.

What do you think?

(Originally posted as Guest Blogger at Harivillu.


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