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Food inflation may be result of growing prosperity: PM Manmohan Singh
Cannes: Prime Minister Manmohan Singh on Friday said inflation in food
articles in India was indeed a problem, but pointed out that grain prices have
been relatively stable.
"What prices are going up are prices of vegetables, prices of eggs, prices of
fish, that is the secondary and tertiary food items. That is a reflection of
the demand for these commodities exceeding supplies," the Prime Minister said,
addressing reporters at the G20 summit at Cannes.
"That in turn, to some extent at least, is a sign of growing prosperity of our
country. If our national income increases by 8 per cent per annum and our
population is increasing at 1.6 per cent per annum, the per capita income is
growing at 6-6.5 percent," he said.
"It is bound to lead to a demand for more diversified type of food basket. I am
not saying this is a fool proof way of describing this complex reality, but in
analyzing food inflation, I think, this is an aspect that should not be lost
sign of," he told a press conference.
Asked about is reaction the protests back home over the recent hike in prices
of petrol, the Dr Singh said the decision to decontrol these prices was a part
of the process to ensure fair play in commodity markets.
"That is the general direction in which we should move. The decision to
decontrol petrol prices was part of that process," he said. The Prime Minister
was in Cannes for the two-day G20 Summit that concluded Friday.
"These are very sensitive areas and I have no hesitation in saying that we must
allow markets to find their own level, except for those commodities which are
in the nature of semi-public goods.
"The direction of decontrolling prices was clear," he said, adding prices of
more fuels may also be decontrolled.
The comments came against the backdrop of oil companies hiking petrol prices by
Rs.1.82 a litre, effective Friday. Finance Minister Pranab Mukherjee has also
defended the move, even as opposition slammed the government for it.
http://www.ndtv.com/article/business/food-inflation-may-be-result-of-growing-prosperity-pm-manmohan-singh-147118
