Good rains will help in controlling inflation: Montek

As inflation touched an all time high of 8.75 per cent, Planning
Commission Deputy Chairman Montek Singh Ahluwalia on Friday expressed
hope that a good monsoon would help in controlling the prices of
commodities.

"Today, inflation is on the rise and there is no denying that. It has
become a major challenge for the Government and we are taking all
possible steps to control it," he said.

On the sidelines of a Panchayati Raj convention, Ahluwalia said that a
good monsoon would strengthen the agricultural sector and bring down
prices of commodities.

"Production and procurement of wheat has witnessed a great high in
this season and if we have a good rainfall, then production of rice
will also see an increase, which will in turn bring down the inflation
rate to some extent," he said.

Ahluwalia rejected calls for the resignation of Finance Minister P
Chidambaram on the issue of rising food prices, saying it would not
serve the purpose as prices are high due to international reasons.

He said price rise is a problem that every country is facing and there
are countries where the inflation rate is higher than that in India.

He also backed the government's step to increase Minimum Support Price
(MSP) for foodgrains