Hoarding, hike in procurement pushed up food inflation: PranabDecember 24th, 2009 - 10:25 pm ICT by IANS
Kolkata, Dec 24 (IANS) Union Finance Minister Pranab Mukherjee Thursday said hoarding and other “cost-push elements” and the hike in procurement prices of food items like sugar, paddy and wheat have played a key role in the high food inflation.
He emphasized that state governments should take effective steps against hoarding of food items in a bid to tackle the cost-push elements.
“For wheat, the procurement prices have been raised by Rs.450 a quintal and Rs.400 for paddy; add stocking, mandi and bank interest charges then you can imagine where the prices would reach,” Mukherjee said at the annual general meeting of Bharat Chamber of Commerce here.
The finance minister said the annual shortage of 5-6 million tonnes of pulses is not being met despite efforts by the government to open up import of pulses as the international prices are ruling high.
“Traders are not importing pulses as international prices are ruling high,” he said.
Speaking of the projected gross domestic product (GDP) growth rate of 7.75 percent for 2009-10, Mukherjee said the estimate is “on the higher side and a little optimistic”.
He said for fiscal consolidation, rationalisation of subsidy and expanding the revenue base of the government is required.
“I am talking to the fertiliser ministry to rationalise the subsidy so that the benefit can be directed to the farmers,” Mukherjee said.
- Trying to rein in food inflation: Pranab - Jul 17, 2011
- Punjab, Haryana procure over 150 lakh tonnes wheat - May 01, 2012
- Non-food items driving inflation: Pranab - May 12, 2011
- Pranab Mukherjee holds pre budget consultations with State Finance Ministers - Jan 19, 2011
- Rising inflation would stabilise in next couple of days: Sheila Dikshit - Jan 14, 2011
- Centre's bonus on wheat unjustified: Badal - Apr 16, 2011
- Growth versus inflation-control is big concern: Mukherjee - Oct 26, 2010
- Rising prices a major challenge, says Pranab Mukherjee - Jan 14, 2011
- Jharkhand sets up 500 paddy procurement centres - Aug 05, 2011
- High inflation not acceptable: Pranab - Jun 23, 2011
- Bihar procures 16 lakh tonnes of paddy - Mar 16, 2012
- Government reviews food security bill - Feb 29, 2012
- Pulses, edible oils may be subsidised to reduce prices: Food Minister (Interview) - Jul 26, 2012
- Farmer suicides spark Bengal political storm (West Bengal Newsletter) - Jan 22, 2012
- Higher food prices push inflation to 9.73 percent - Nov 14, 2011
Tags: annual general meeting, bank interest, dec 24, fiscal consolidation, food items, gdp growth rate, gross domestic product, interest charges, key role, kolkata, mandi, paddy, pranab mukherjee, procurement prices, pulses, quintal, rationalisation, state governments, subsidy, union finance minister