A high level meeting convened by the Prime Minister in New Delhi on Tuesday took stock of the situation on price front and discussed ways to tackle food inflation. Dr Manmohan Singh will be continuing consultations on the issue and decisions are likely to be taken in a couple of days at the next meeting of the Cabinet to bring down the rising prices. AIR correspondent reports, the meeting which lasted for over two hours was attended among other by the Finance Minister Pranab Mukherjee, Home Minister P. Chidambaram, and the Agriculture Minister Sharad Pawar. The meeting was held in the backdrop of onion prices soaring to as high as 80 rupees a kilogram and prices of vegetables, milk, eggs and meat registering a sharp increase leading to food inflation crossing the 18 per cent mark . Although the government took a number of steps including slashing of import duty on onions to augment its supplies and income tax raids on traders in this commodity , the impact has not been on the expected lines.The unseasonal rains in Tamil Nadu , Karnataka and Maharashtra , the wide gap between farm gate prices and consumer prices and other loopholes in agri distribution system , hoarding , black marketeering and speculation are being blamed for the inflation.The recent global hike in food commodities has also added to the worry of the government and it is likely to come out with an effective strategy in a couple of days to bring down food inflation by taking all these factors into consideration.
News On AIR | January 11, 2011 7:34 PM
‘PM’s high level meeting discusses ways to tackle soaring inflation