By IANS,
New Delhi : Planning Commission Deputy Chairman Montek Singh Ahluwalia Wednesday said a robust rabi production would bring down food price inflation by the end of the year.
“What you see now is spurt in prices which probably reflects the element of speculative expectations because of drought. With the prospects of good rabi by the end of the year, food price inflation will come down,” Ahluwalia said here at the annual Economic Editors’ Conference.
India’s kharif output has been hit hard by drought-like situations and flood in many parts of the country, pushing up food prices by 12.85 percent.
According to the government’s estimates, India’s rice output is expected to be around 69.45 million tonnes this kharif season, or about 15 million tonnes less than in the previous season.
Although the food price inflation has begun to come down in last few weeks, it is “still on the higher side”, Ahluwalia said.
“We are concerned about food price inflation. It will hurt the aam addmi (common man). It is something we are worried about.”