New Delhi : Enhancing productivity levels, developing agricultural infrastructure and rationalising the agro-market can help check the soaring prices of essential commodities, says a leading industry body.
The wholesale prices of primary products such as fruits, vegetables, wheat, spices and condiments have increased by 4.41 percent as of the week ending July 14, said the survey by the Federation of Indian Chambers of Commerce and Industry (FICCI).
Greater emphasis should be put on increasing the agricultural sector's productivity levels, especially for those items with high demand. The survey has said this could be achieved by increasing the farm area.
The chamber also suggested leveraging oilseed productivity as well as the percentage of oil content in the oilseeds produced. Availability of good seeds and inputs along with the use of proper technology and farming methods would inevitably increase the yield.
The body suggested converting India into a common market by rationalising the entry or toll taxes in all states. The market fee and mandi tax should be made uniform across the states.
FICCI said the rise in prices of the essential food items was mainly due to supply shortages in the agro-commodities market which could be linked to the dismal growth in agriculture, low levels of farm productivity and grossly inefficient agricultural marketing infrastructure.