India: Government Fights Inflation

January 13th, 2011
in Background

Hindustani Times:  Promising to crack down on black marketeers and hoarders, the government today unveiled measures to check spiralling prices by deciding to continue ban on exports of edible oils, pulses and non-basmati rice and asked states to waive local taxes on essential commodities.

Follow up:

The food inflation, measured by wholesale prices, for the week ended January 1, 2011, moderated slightly but was still ruling high at 16.91 %.

The Government said it was watching the situation closely and is committed to containing the adverse impact of any inflationary pressures on the common man.

"Cartelisation by large traders will be strictly dealt with. The States will be requested to ensure that such action is effectively taken under the Essential Commodities Act, 1955, and the Competition Act, 2002," the statement said.

Investment will be encouraged in supply-chains,including provisions for cold storages, which will be dovetailed with organised retail chains.

Earlier in the day, Finance Minister Pranab Mukherjee said that "unnecessary" panic should be avoided. "We have analysed the situation. We have indicated what further steps we are going to take. We have also indicated that there should not be any unnecessary panic."

The only lasting solution to food inflation lies in increasing agricultural productivity, the statement said.  Read more at the Hindustani Times......

From Sanjeev Kulkarni


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