Deficient rains may lead to further price rise: RBI

By IANS,

New Delhi : The erratic monsoon may lead to a further rise in prices of essential commodities, the Reserve Bank of India said Tuesday.


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“The erratic monsoon may put pressure on inflation and could increase the prices,” RBI Deputy Governor K.C. Chakrabarty told reporters on the sidelines of a conference here.

He further stated that there was no proposal for rescheduling farm loans right now and it could be taken up next year.

Earlier in the day, Planning Commission Deputy Chairman Montek Singh Ahluwalia said here that the country has enough food stocks to counter inflationary pressures.

According to the agriculture ministry, rainfall had been 29 percent below normal between June 1 and Aug 12. The government has so far declared 177 out of India’s 626 districts drought-hit.

According to official data, the prices of pulses were up by 18 percent this week, while that of cereals went up by 12 percent. The prices of vegetables and fruits rose 18 percent.

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