Chidambaram hints at taming milk & oilseeds
Finance minister P Chidambaram on Friday indicated that he could consider steps for lowering prices of milk, oilseeds and fertilisers to rein in inflation.
By TNN |
NEW DELHI: Finance minister P Chidambaram on Friday indicated that he could consider steps for lowering prices of milk, oilseeds and fertilisers to rein in inflation. Speaking to media persons after a post-budget meeting with the central board of the RBI, Mr Chidambaram said: “The board has welcomed the Budget’s emphasis on irrigation, education and supply side measures for cereals and pulses, but added that special attention to edible oil seeds, milk and fertilisers is needed. The point is well taken.”
Mr Chidambaram informed reporters that he had conveyed to the board of the RBI what the Prime Minister had told the parliament on Thursday that the goal is to moderate inflation without affecting growth. “It is easier said than done. But it is important to moderate inflation. The government fully supports monetary measures taken by RBI to control inflation and will stand by it when more such measures are taken,” the minister said.
He also said that the board of the RBI has broadly welcomed the thrust of the Budget, the thrust on agriculture and inclusive growth, he said.Inflation which indicates the general level of prices of goods and services in the economy, based on wholesale prices for the week ended February 24 rose to 6.10% from 6.05% in the previous week. The central bank has fixed a threshold level of 5%-5.5% for this fiscal.
The all time high this fiscal was when inflation touched 6.73% in early February. Several monetary and fiscal measures have been taken by the government to tame the inflation. The government had also banned exports of skimmed milk powder early last month as part of its measures to rein in the inflation.
Chidambaram also said that RBI Governor Y V Reddy told the board that India has managed the oil shock without any instability in the last three years, unlike in the past.
Mr Chidambaram informed reporters that he had conveyed to the board of the RBI what the Prime Minister had told the parliament on Thursday that the goal is to moderate inflation without affecting growth. “It is easier said than done. But it is important to moderate inflation. The government fully supports monetary measures taken by RBI to control inflation and will stand by it when more such measures are taken,” the minister said.
He also said that the board of the RBI has broadly welcomed the thrust of the Budget, the thrust on agriculture and inclusive growth, he said.Inflation which indicates the general level of prices of goods and services in the economy, based on wholesale prices for the week ended February 24 rose to 6.10% from 6.05% in the previous week. The central bank has fixed a threshold level of 5%-5.5% for this fiscal.
The all time high this fiscal was when inflation touched 6.73% in early February. Several monetary and fiscal measures have been taken by the government to tame the inflation. The government had also banned exports of skimmed milk powder early last month as part of its measures to rein in the inflation.
Chidambaram also said that RBI Governor Y V Reddy told the board that India has managed the oil shock without any instability in the last three years, unlike in the past.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
