Google

Saturday, April 19, 2008

Prices will ease with good monsoon, says Baru

19 Apr, 2008, 1644 hrs IST, PTI
 
NEW DELHI: Inflation will ease with good monsoon and the need to take short-term measures to control prices will gradually go away, said an official in the Prime Minister's Office.

"My guess is that with good monsoon, we will see some easing of food price inflation. And, therefore, the temptation of quick-fix price control will go," said Prime Minister's media adviser Sanjaya Baru, while dubbing import duty cuts and ban on exports of certain commodities as short-term measures.

The government and the Reserve Bank has taken a host of fiscal and monetary measures to check inflation, which is hovering at 7.14 per cent now, down marginally from a 40-month high of 7.41 per cent on March 29.

Inflation has mainly been driven by high prices of food and some manufactured goods.

To reign in high prices, the government banned export of non-basmati rice and pulses and reduced duties of refined edible oil. The RBI too increased the mandatory deposits that banks maintain with the central bank to 8 per cent in a bid to curb money supply.

Pointing out that the country is increasingly becoming a food importing nation, Baru said, "It would be in the interest of India to favour continuation of farm subsidies by the US and the European countries so that import prices remain low."

India, however, is opposed to developed countries subsidising their farm sector.

Baru, who made these comments at the IISS-Citi India Global Forum here, clarified that he was speaking in his personal capacity and not as spokesperson of the government. "It is for the Commerce Ministry to take a view of the issue", he added.
 
Source: ET


Did you know? You can CHAT without downloading messenger. Click here

No comments:

Sify.com - News

NDTV - Business News

Moneycontrol - Buzzing Stocks

Moneycontrol Top Headlines

News Flash from IndiaEarnings

Saraswat Bk seeks RBI nod to acquire ailing South Ind Co Bk
Telekom Malaysia to pick up addl 15% stake in Idea: Srcs
Hind Rectifiers brd meet on June 24 to consider bonus issue
Inflation will touch double digit mark next week: I-Sec
NY Times in talks to buy 5% stake in Deccan Chron Arm
Inflation for wk ended Apr5 revised to 7.71% vs 7.14%earlier
Inflation for week ended May 31 at 8.75% vs 8.24%
Indian economy won't be as badly hit as the global eco:DCB
Over a period of time mkt may drift down to 4060 :Atul Suri
Shriram Cap likely seller in Shriram City Un Fin block deal
Shriram City Union Fin changes 12.2% Eq via block deal
No big rally in mkt till oil pices cool off: Lehman Bros
BoJ keeps key interest rate unchanged at 0.5%
J&K Bank raises Prime Lending Rates by 100 bps to 14%
L&T aays plan to list IT sdubsidiary in FY09
IFCI okays initiation of legal process to align LIC stk
Rupee opens at 42.82/USD vs 42.84/USD on Thursday
Karnataka Bank board approves 1:5 rights issue at Rs 100/sh
45.37 lakh Suzlon shr change hands on BSE at Rs 250.95/sh
Oil India plans to launch IPO by Sep: NW18
ABG Shipyard bags order worth Rs 127 Cr
Nutrient base pricing is good for industry:RCF
FM says avg prc of complex fert to decline by Rs 1416/t
Deccan Chronicle likely to place Sieger Eq at EV of USD750 m
BNP Paribas see 25 bps CRR hike before RBI July policy
Disclaimer