Govt foxed by price rise as PM's meeting remains inconclusive

But govt hopes that it would be wiser tomorrow as it readies for another round of discussions on Wednesday

PTI | January 11, 2011




As the government grapples with high prices of essential commodities, prime minister Manmohan Singh today held a meeting with senior ministers to find ways to tame food inflation which has crossed 18 per cent.

The meeting attended by finance minister Pranab Mukherjee, home minister P Chidambaram, food and agriculture minister Sharad Pawar and planning commission deputy chairman Montek Singh Ahluwalia remained inconclusive.

"Another round of discussion may be held tomorrow," a source said.

Food inflation rose to 18.32 per cent for the week ended December 25, due to rise in prices of food items like onion, milk and meat.

Retail price of onion continues to rule high at Rs 55-60 per kg in major parts of the country due to sluggish supply.

Food inflation has been fuelled by high prices of vegetables, fruits,meat, eggs and milk.

Onion has remained in headlines since prices could decline only marginally despite the government announcing three weeks ago that it was taking several measures to increase supply, including through import.

However, Pawar said yesterday that there was not much the government could do in regard to vegetable prices.

"...vegetable prices are high and on that we do not have any control," he said, hoping that prices would come down "eventually".

Even arrivals of new onion crop could not make much impact on its prices which remained at Rs 55-60 at the retail level.

Measures like Income Tax raids on traders, slashing import duty on onion and tight monetary policy by the Reserve Bank have not helped ease the situation.

To some extent, global spike in commodity prices are also being blamed for inflation, which has become a main concern for the government.

On the import front, there seems to be no immediate hopes of Pakistan resuming onion exports to India with its local traders deciding to sell the contracted 3,000 tonnes of the vegetable into their local market.

Comments

 

Other News

Counting matters but which ones?

The first instinct of public policy is to count. Its harder task is to count what counts. We have become remarkably good at measuring the reach of the welfare state vis-à-vis beneficiaries covered, rupees transferred, houses built, connections installed and services delivered. But some of the most

Inching closer to a trade deal with America

The cooperation between India and the United States goes back quite a time. We need to relegate that era to the backburner when Pandit Jawaharlal Nehru visited US in the times of president Dwight Eisenhower and called the American let-off of 10 million dollars in defence aid to Pakistan as a “gun w

Manch vs Musk: Forty people and a foreign billionaire

About forty people walked the roundabout on Teen Murti Marg to the gate of Chanakyapuri police station, a distance you could cover in under a minute, on Friday to protest against Elon Musk’s Starlink. The walk was called by the Swadeshi Jagaran Manch. Nobody joined them on the way, and nobody seeme

Master sculptor recalls the making of the Shankaracharya statue

The Golden Chisel: The Story Behind the Making of Ram Lalla  By Seethalakshmi S. and Rahul Nandan Rupa Publications, 168 pages, Rs 395  

Mumbai’s missing affordable homes

Mumbai’s real estate market keeps growing, yet homeownership remains out of reach for much of its population. Three experts – urban researcher Hussain Indorewala, urban planner Vidyadhar Phatak and developer Kamlesh Thakur of NAREDCO Maharashtra, agree that simply constructing more apartments

Rubio denies US foreknowledge of Starlink restrictions in Ukraine

US secretary of state Marco Rubio has said he was unfamiliar with the Wall Street Journal report suggesting Elon Musk had decided to throttle Starlink services in Ukraine, but rejected claims that Washington had ordered the restrictions to pressure Kyiv.   “There was no

Upcoming Conferences



-->

Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter