Govt trying to rein in food inflation, says Pranab
Holding low production of foodgrain responsible for rising prices, Union finance minister Pranab Mukherjee today said the central government is trying to rein in the food inflation.business Updated: Jul 17, 2011 23:06 IST
Holding low production of foodgrain responsible for rising prices, Union finance minister Pranab Mukherjee on Sunday said the central government is trying to rein in the food inflation.
"Prices of foodgrain increased due to low level of production. We need a total of 19 million tonnes of foodgrain, but our total production is 14 million tonnes. This time, the production of pulses has increased," Mukherjee told reporters in Kolkata.
He said high procurement prices of foodgrain was also contributing to the inflation.
"Earlier, procurement price of one quintal of paddy was Rs.600, now it is Rs.1,100. The central government collects one third of the total foodgrain production. The procurement prices are determining the benchmark of market prices," he said.
"We are trying to reduce food price inflation," he added.