The drought earlier in the year and subsequent floods in Karnataka and Andhra Pradesh may give rise to inflation, even though agriculture minister Sharad Pawar said a good showing during the rabi season may go a long way in ameliorating the situation.
“Inflation in food articles is a matter of concern and the government has taken several steps to arrest the increase in prices of these commodities,” he said at the Economic Editors’ conference.
Asked if he saw food prices easing over the next three months, he said: “It isdifficult to say now. But the situation will change once the rabi (winter) crops are harvested,”
he said. Pawar said on Wednesday that the government had set a target of surpassing last year’s foodgrain production by 8.5 million tonnes to partly offset losses.
“We have taken measures to augment production in rabi to partially offset losses in kharif. Improved soil moisture due to late monsoon rains has improved the prospects of Rabi crop,” he said.
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