Floods won't affect 5-6% farm growth target: Montek

NEW DELHI: The Planning Commission on Wednesday said that the farm sector growth target of 5-6 per cent this fiscal would not be affected despite flooding in some parts of the country.

"In many parts of the country there will be some crops that might be affected but I don't think overall target (of farm growth of 5-6 per cent this fiscal) would change," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters on the sidelines of a book release function organised by Skoch Consultancy Services.

Flood has hit many parts of the country, including Bihar, Uttar Pradesh and Uttarakhand. The raging rivers due to incessant rains has also affected lives in Punjab, Haryana and Himachal Pradesh.

On whether food prices could rise further due to incessant rains, he said, "This disruption is very local and would not affect the entire country. The inflation will moderate and it would be close to 6 per cent by December this year."

About setting up of a Infrastructure Debt Fund of Rs 50,000 crore, he said, the consultations on the issue would be over in a couple of weeks and a decision would be taken in a couple of month's time.

Asked about the fiscal deficit, he replied that the fiscal deficit would not exceed the target of 5.5 per cent of gross domestic product.

On the monitorable target of the five infrastructure sectors including road, power and ports, he said, "The Commission has come out with the first quarterly review of the targets. But the more serious review would be done in November when the figures for the second quarter (July-September) of this fiscal would be available."