(2) The issue of inflation isaddressed from both demandand supply sides. demandmanagement is achieved bymeasures such as postponingpublic expenditure, moppingup excess liquidi ty eitherthrough taxes or savingsschemes, etc. On the supplyside, the mechanism of PublicDistribution System (PDS)ensures availability of essentialcommodities for the vulnerablesections of society.This helps to maintain pricelevels. Coupled with this is theopen market sale of rice andwheat resorted to by FCI fromits buffer stock in times of pricerise.