Manmohan Singh at a programme to dedicate the Tata Hydel Power Project in Thimpu on Saturday. (PTI)

Bagdogra, May 17: Political parties must junk the blame game and state governments their resistance to a federal crime agency if India is to fight terror effectively, the Prime Minister said today.

He also set a deadline on the price rise for the first time, saying inflation would ease considerably by September 15 – even earlier if there was a normal monsoon.

Manmohan Singh, during a stopover here on his way back from Bhutan, told a news conference that political parties had the duty to work together to defeat terrorism and not adopt divisive policies or politicise the issue.

He asked the states to keep an open mind on the formation of a federal investigative agency. Referring to the Jaipur blasts, he said state governments were not equipped to investigate and handle cases with inter-state ramifications.

“There is a case for a federal agency which will have the facilities and the freedom to investigate crimes with inter-state ramifications. So far there has been a reluctance on part of the states in surrendering their powers. They have to recognise that there is such a thing as a federal crime, and the Centre and the states have to work together,” Singh said.

He stressed the need to strengthen the country’s intelligence and security systems but offered a mild defence for the intelligence and security agencies, saying terrorists have the element of surprise.

Under fire over price rise, Singh said: “I want to tell the public and the political parties to have patience. The government does not have a magic wand. Several measures are being taken to control prices.”

He added that the poor had been insulated against the effects of inflation by ensuring that public distribution system (PDS) prices did not go up.

Singh said his government had increased production to maintain a balance between supply and demand, liberalised imports and discouraged exports.

The government could have taken drastic measures to achieve quick results, he said, but that would have led to an industrial recession and dwindling employment opportunities.

“We did not want that to happen,” he said.

On the Indo-US nuclear deal and the upcoming talks with the Left on May 28, the Prime Minister said he had always believed that the deal was in the national interest and hoped “good sense will prevail”.

He mentioned the support expressed for the deal by former President A.P.J. Abdul Kalam and former national security adviser Brajesh Mishra.

“All thinking people and the scientific establishment have spoken in support of the deal. The former President, who was responsible for the Pokhran tests, has endorsed it. The deal will protect the strategic interests of India and widen options for use of nuclear power for civil programmes,” Singh said.