Sonia attacks price rise

The prime minister was warned of further action

India's opposition leader, Sonia Gandhi, has demanded that the government roll back heavy cuts in subsidies.

Mrs Gandhi led senior members of her Congress party to the prime minister's residence and warned him of further action if the decision was not reversed.

Food prices rose sharply after the government slashed food and fertiliser subsidies in the annual budget in March.

Prime Minister Atal Behari Vajpayee justified the move as a way of controlling India's 5.6% fiscal deficit.

Protest

Congress members shouted anti-government slogans as Mrs Gandhi led the march from the party's office.

Senior party colleagues followed close behind amid tight security, and traffic was kept away.

Unless the government reverses these anti-people decisions, the Congress Party will continue to agitate

Opposition leader Sonia Gandhi

Mrs Gandhi said the government must wake up to the distress of the people.

"Unless the government reverses these anti-people decisions, the Congress party will continue to agitate through democratic means at its disposal," she said.

Mrs Gandhi raised the issue with the prime minister, but said she got no firm assurance from after the 40 minute meeting.

She said the federal cabinet scheduled to meet later in the evening might take up the subject.

Cuts

Subsidies on food were cut by nearly 12% leading to a sudden surge in the price of basic foods such as sugar and grain.

The government also reduced subsidies on fertilisers by 4.5%.

The government said the action saved nearly $2bn.

But the move was criticised by opposition parties who said it affected millions of poor people.

The government's decision came despite stiff resistance from some of its partners in the ruling coalition.