Foodgrain prices to come down in a month: Pranab

Soaring foodgrain prices are set to come down “after a month or so” as a result of steps taken to import food and build up a buffer, Finance Minister Pranab Mukherjee said.

“Though the production of grains has been hit, there are adequate buffer stocks” - nearly eight million tonnes of wheat and more than seven million tonnes of rice, Mukherjee said Sunday.

“We have taken adequate care to maintain the demand and supply position by allowing commodities of shortfall to be imported without any duty.”

Mukherjee said although the overall agricultural scenario appears to be “bright”, India is “not totally out of the woods”.

“Things have started improving and I'm quite confident that, as the prime minister mentioned today, that if rainfalls are adequate then next year we'll have higher growth projections of more than seven percent. I am also optimistic to that extent.”

Admitting there were inflationary pressures, he said “to what extent they will go beyond the manageable level is yet to be seen".

“Seasonal factors have contributed to the high prices of some of the essential commodities, and I do hope it will be possible to have a moderate impact after a month or so, particularly for those crops which are adversely affected by the seasonal factors.”

Mukherjee said the government, having guaranteed rural employment through the National Rural Employment Guarantee (NREG) scheme and cleared the right to education bill, is now keen to legislate the right to food.

“I do hope shortly it will be put up on the website of the agriculture ministry - they are working on the draft.

“These entitlements are being backed by the legal rights which will strengthen the Indian people and facilitate the cardinal strategy of our growth strategy - inclusive growth,” Mukherjee added.

Last updated on Nov 9^th, 2009 at 16:25 pm IST--IANS