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As people despair, government explains high food prices

Category :India Sub Category :National,Business
2009-07-28 00:00:00
   Views : 421

New Delhi, July 28 - As prices of fruits, vegetables and lentils across the country soar, the government Tuesday said the rise in food prices was primarily due to higher remuneration to farmers, a fall in production of some crops and a seasonal rise in demand.

The government also warned of strict action against hoarders, even as opposition members in the Lok Sabha protested what they called was gross inaction in curtailing the price rise that was putting even basic food items out of the people's reach.

According to Minister of State for Finance Namo Narain Meena, the government had already taken a a slew of measures to keep prices of essential commodities under control.

He said a selective ban was also imposed on exports and futures trading in food grains, apart from permitting import of lentils and sugar by state-run firms at zero import duty.

'The government will also take strict action against hoarders and continue with restrictions on stock limits and movements of food articles,' the minister said in a written reply to the Rajya Sabha, the upper house of parliament.

Prices of food items like tomatoes, onions and potatoes that are part of the grocery list of most Indian households are moving away from their reach as prices continue to soar because of erratic and low rainfall in major pulse- and vegetable-producing states.

The prices of potatoes and onions have touched Rs.20-Rs.25 a kilogram in the national capital, while that of tomatoes has shot up to almost Rs.40. A kilogram of tur dal, which is consumed across the country, costs as much as Rs.90 in some states.

Amid this already worrisome situation, the central bank Tuesday warned that the inflation could even rise further as monsoon rain - on which depends 60 percent of India's farm sector - has played truant in several parts of the country.




Author :Indo Asian News Service



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