Arun Jaitley to meet top ministers, Chief Economic Advisor to discuss steps to keep prices of essential commodities in check. (PTI Photo)
Highlights
- Finance Minister to hold high-level meeting today on rising food prices
- Top ministers, Chief Economic Advisor Arvind Subramanian to attend
- They will discuss steps to keep prices of essential commodities in check
Finance Minister Arun Jaitley held a high level meeting today on rising prices of food, which have driven up wholesale inflation to its highest in 19 months. Prime Minister Narendra Modi was also present at the meeting.
Here are the 10 latest developments in this story:
Urban Development Minister Venkaiah Naidu, Transport Minister Nitin Gadkari, Food Minister Ram Vilas Paswan, Agriculture Minister Radha Mohan Singh and Commerce Minister Nirmala Sitharaman attended the meeting. Top officials including Chief Economic Advisor Arvind Subramanian were also present.
They discussed steps to keep prices of essential commodities in check. Industry body FICCI has asked the government for a "more proactive management" of food supply and has said it hopes "inflation will remain within the RBI's indicative trajectory".
The price of vegetables is a major concern, with the Wholesale Price Index or WPI data released on Tuesday showing that vegetable inflation rose sharply from 2.21 per cent in April to 12.94 per cent the next month.
Tomato prices have doubled to an average Rs 80 a kg across the country due to crop damage. In Hyderabad, they are selling for Rs 100 a kg. Potato and onion prices are up too.
Retail prices of pulses are high at over Rs 170 per kg. Pulses inflation has remained in double digits since January 2015 and stood at 35.56 per cent in May.
Rising oil prices could triple wholesale inflation by the next financial year, some economists warn.
Government sources told NDTV that they are monitoring the price situation closely and will take appropriate action at the right time.
Sources said today's meeting will take stock of progress made in pulse imports, discuss the creation of a buffer stock and lifting of stock by state governments for retail distribution at subsidised rates.
The ministers and officials will also discuss import and export duties on sugar, wheat and edible oils, the sources added.
Consumer inflation is already beyond the target the RBI set for next year, lowering chances of an interest rate cut needed to spur demand and growth.
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