SHILLONG: Union Finance Minister Pranab Mukherjee on Saturday admitted that food inflation in the country is disturbing as insufficient supply of essential commodities like edible oil, sugar and pulses is one of the main bottlenecks before the inflation.
Speaking to media persons after attending the first convocation of the IIM, Shillong, Mukherjee said, "There has been a shortfall in the supply of the essential commodities as these commodities are also not available in the global market."
He also admitted that despite allowing free duty import, the adequate supply was not available which worsened the situation.
However, steps have been taken as public sectors undertakings are importing food grains in whatever way it can be done, Mukherjee said.
Commenting on the price rise of sugar which is an essential commodity in each and every household, the Finance Minister said the sugar situation is likely to ease soon as the production has been substantial.
According to him, the food inflation may go down once the Rabi harvesting is completed.
"When the Rabi harvesting will be completed, perhaps it may have a moderating influence on the food inflation," Mukherjee said.
He also informed that he had met the Governor of Reserve Bank of India recently to assess the financial situation of the country and also to see what monetary steps are required in order to tackle the sky high inflation rate.
It may be mentioned that inflation has gone up to 9.89 per cent in February mainly because of rising prices of essential food items which has largely affected the common men's budget.
On the stimulus package, Mukherjee said, "I have withdrawn only part of stimulus package, for instance the excise duty was brought from14 per cent to eight per cent now from eight per cent I have stepped up to 10 per cent and it's almost similar."
The Shillong Times
