Food inflation to dip due to good monsoon: Chidambaram

New Delhi, Aug 12 (PTI) The Indian government Friday
expressed confidence that food inflation will come down as the
monsoon has been reasonably good even as it insisted that the
Food Security Bill has been approved by the GoM and is in the
process of being taken up by the Cabinet.
"Monsoon has been reasonably good. Just below normal but
chances are that it will pick up. A number of steps have been
taken (to bring down food inflation). We hope food inflation
will dip," Home Minister P Chidambaram told reporters.
He said Finance Minister Pranab Mukherjee has already
clarified why food inflation is high at the moment.
"Finance Minister has said one of the reasons for food
inflation is that there is a sustainable demand for food
because of a number of reasons. Demand is high even in rural
areas. But that is a good thing. It is good that people are
demanding food. I wish supply will also catch up," Chidambaram
said.
He said the Food Security Bill will be presented to
the Cabinet soon for approval.
"Food Security Bill has been discussed in the GoM. It
will now come to the Cabinet... Nothing is holding it up.
GoM has discussed it. It will now be drafted by the legal
department after which it will be discussed by the ministries
concerned," Chidambaram said.
He insisted there is a process between a Parliamentary
committee approving the Bill and its coming before Cabinet.
The Home Minister said Indian exports were at an
advantage due to price competitiveness.
"Exports are high because our exporting industry has
acquired competitive strength... Countries which are in a
recession will naturally look for products where there is
price competitiveness... Indian industry has an advantage (due
to this)," Chidambaram said.