RBI Governor D Subbarao has said that immediate steps should be taken to raise agriculture output substantially to combat food scarcity and consequent soaring of prices. He said, it is necessary to increase investment in water management and rural infrastructure to step up farm productivity and production. Dr Subbarao was talking to students of the Indian Institute of Technology at Bhubaneswar in Odisha. Calling for launching a second green revolution in the country, he said, food prices in the world market have gone up by 25 per cent between December 2009 and December 2010. He said, rising prosperity in rural India is also leading to food scarcity, which is driving up food prices. Mr Subbarao said, since rural incomes are going up, people are eating better by shifting from cereal to protein rich diet and it is leading to food scarcity. Food inflation, which has been hovering in double digit levels for the last few months has been a cause of concern for the government. It rose to 11.49 per cent for the week ended February 12 from 11.05 per cent in the previous week, driven by rising prices of milk, egg, meat and vegetables.
News On AIR | February 28, 2011 8:33 AM
Immediate steps to be taken to combat food scarcity says Subbarao