ID :
108032
Mon, 02/22/2010 - 21:53
Auther :
Shortlink :
https://www.oananews.org//node/108032
The shortlink copeid
Tackling food inflation govt's top priority: President
New Delhi, Feb 22 (PTI) Under attack over the steep rise
in food prices, the Indian government Monday said price rise
was inevitable given the shortfall in production, but ranked
insulating the common man from inflation as its top priority.
"While we were able to avert any threat to our food
security, there has been an unhappy pressure on prices of
foodgrains and food products...
"Higher prices were inevitable given the shortfall in
domestic production and prevailing high prices of rice,
cereals and edible oils globally," Indian President Pratibha
Patil said in her address to joint sitting of Parliament on
the opening day of the Budget session.
The country's food inflation touched a decade's high of
about 20 per cent in December before slightly declining to
around 18 per cent this month.
The opposition parties, agitated over high food prices,
have made clear their intent to corner the government in
Parliament on this front.
The President's address, which lists priorities and
policies of the Indian government, pegged economic growth for
the current fiscal at 7.5 per cent. Growth had dipped to 6.7
per cent last year from over nine per cent under the impact of
global economic crisis.
The economy, Patil said, is expected to grow by over
eight per cent in 2010-11 and nine per cent in 2011-12.
On rolling back stimulus measures, the address remained
silent giving no indication about the direction of the General
Budget to be unveiled later this week.
In order to help the industry fight the impact of global
crisis, the Indian government unveiled a stimulus package in
three tranches resulting in revenue sacrifice of Rs 1.86 lakh
crore. This also led to fiscal deficit soaring to 6.8 per cent
of the Gross Domestic Product (GDP) from 6.2 per cent a year
ago.
Besides experts, the Indian Prime Minister's Economic
Advisory Council (PMEAC) also in its recent report pitched for
raising excise duty, beginning partial withdrawal of stimulus
and contain fiscal deficit.
The Indian government, as part of the stimulus, reduced
the excise duty from 14 per cent to 8 per cent to help
generate demand for industrial goods.
Elaborating on price rise, Patil said it was on account
of shortfall in domestic production and high prices of rice,
cereals and edible oils in the international market.
Higher food prices to some extent, she added, were also a
reflection of government schemes involving increased
procurement prices to farmers.
The government, she assured the members, would come out
with the legislation to ensure food security for below poverty
line (BPL) families.
The Congress, in its election manifesto, had promised to
enact a law to provide 25 kg of rice or wheat per month at
highly subsidised rate of Rs 3 per kg to BPL families. PTI CS
RDM
in food prices, the Indian government Monday said price rise
was inevitable given the shortfall in production, but ranked
insulating the common man from inflation as its top priority.
"While we were able to avert any threat to our food
security, there has been an unhappy pressure on prices of
foodgrains and food products...
"Higher prices were inevitable given the shortfall in
domestic production and prevailing high prices of rice,
cereals and edible oils globally," Indian President Pratibha
Patil said in her address to joint sitting of Parliament on
the opening day of the Budget session.
The country's food inflation touched a decade's high of
about 20 per cent in December before slightly declining to
around 18 per cent this month.
The opposition parties, agitated over high food prices,
have made clear their intent to corner the government in
Parliament on this front.
The President's address, which lists priorities and
policies of the Indian government, pegged economic growth for
the current fiscal at 7.5 per cent. Growth had dipped to 6.7
per cent last year from over nine per cent under the impact of
global economic crisis.
The economy, Patil said, is expected to grow by over
eight per cent in 2010-11 and nine per cent in 2011-12.
On rolling back stimulus measures, the address remained
silent giving no indication about the direction of the General
Budget to be unveiled later this week.
In order to help the industry fight the impact of global
crisis, the Indian government unveiled a stimulus package in
three tranches resulting in revenue sacrifice of Rs 1.86 lakh
crore. This also led to fiscal deficit soaring to 6.8 per cent
of the Gross Domestic Product (GDP) from 6.2 per cent a year
ago.
Besides experts, the Indian Prime Minister's Economic
Advisory Council (PMEAC) also in its recent report pitched for
raising excise duty, beginning partial withdrawal of stimulus
and contain fiscal deficit.
The Indian government, as part of the stimulus, reduced
the excise duty from 14 per cent to 8 per cent to help
generate demand for industrial goods.
Elaborating on price rise, Patil said it was on account
of shortfall in domestic production and high prices of rice,
cereals and edible oils in the international market.
Higher food prices to some extent, she added, were also a
reflection of government schemes involving increased
procurement prices to farmers.
The government, she assured the members, would come out
with the legislation to ensure food security for below poverty
line (BPL) families.
The Congress, in its election manifesto, had promised to
enact a law to provide 25 kg of rice or wheat per month at
highly subsidised rate of Rs 3 per kg to BPL families. PTI CS
RDM
