Worried over food inflation, PM convenes meeting tomorrow

New Delhi, Jan 10 (PTI) Indian Prime Minister Manmohan
Singh has convened a meeting on Tuesday on high food prices
even as Agriculture Minister Sharad Pawar said the government
has no control over high vegetable prices.
Onion remained expensive at Rs 55-60 per kg in retail
markets across the country. Prices could have gone up further
but for the calling-off a two-day strike by traders in Nashik,
the major producing area, within hours.
The meeting called by the Prime Minister is expected to
be attended by Finance Minister Pranab Mukherjee, Planning
Commission Deputy Chairman Montek Singh Ahluwalia, besides
Pawar.
"...vegetable prices are high and on that we do not have
any control," Pawar said, adding that prices will come down
"eventually".
He said supply has started improving with fresh arrivals
from Gujarat, Madhya Pradesh and parts of Maharashtra.
Pawar comments come within days of senior ministers
expressing difficulties in containing the price rise,
particularly of food items.
Food inflation, fuelled by high prices of vegetables,
milk, egg and meat, has crossed 18 per cent.
The onion shortage could not be made up by arrival of
new crop in mandis.
Nashik strike would have worsened the situation as
traders were protesting against income tax (I-T)raids, stating
that they were being forced to sell onion not above Rs 30 per
kg.
"The two-day strike of onion traders in Nashik, which
began today, has been called -off," Nashik District Onion
Traders Association's President Sohanlal Bhandari said, adding
that the authorities have given them assurance that their
grievances would be looked into.
Meanwhile, Income Tax (I-T) raids continued on traders
in Delhi and National Capital Region (NCR) region.
Efforts to convince Pakistan to allow Wagah border land
route land for onion exports to India did not yield results.
However, Amritsar traders who had stopped consignments
of tomato and other vegetable consignments to Pakistan,
allowed trucks to move across the border.