Concerned over rising prices of essential commodities, government today said it is taking steps to address the situation which has partly arisen because of high support prices paid to farmers.
"Prices are a major area of concern. We will have to address it, and we are doing it," finance minister Pranab Mukherjee said in the Rajya Sabha replying to a debate on the Appropriation Bill for supplementary demands for grants.
Mukherjee said while the government is taking steps to tackle the price rise situation, the ground reality has to be kept in mind. "These issues cannot be solved by mere rhetoric," he said.
Under the impact of floods, drought and global prices, food inflation crossed 19% in November, the highest in over a decade.
Mukherjee said inflation, especially of food items, has also gone up because of the "cost-push factor" following a high level of support in terms of prices government paid to farmers — be it sugarcane, wheat or rice. However, there would be no going back, and farmers will have to be encouraged, he said.
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