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| Food Prices |
"Absolutely," Chief Economic Adviser Kaushik Basu told reporters whilst asked whether the government does not maintain all the tools to control food prices.
P Chidambaram, who had served as Finance Minister in the prior UPA regime, had the past wondered whether the government has all the tools to lead in prohibitive food prices.
"... Nor am I really whether we maintain by the side of our employee all the tools to control inflation. Some say we resolve, selected say we don't (have tools to check charge rise). At smallest amount in legal action of food inflation, I maintain not heard everybody in opposition convincingly with the aim of we maintain all the tools to control food inflation," the Home Minister had thought.
Basu thought, "I mean this is a colossal terrain in provisions of population and soil area. It is utter muddle up to think with the aim of it is fully inside the control of the government to move prices of food up and down."
"The government is immediately an enabling body, near are little confined bodies taking decisions, near are exclusive players taking decisions, farmers taking decisions... Government can allot signals, can intervene tactically to keep the position as much under control as promising," he thought.
While stating with the aim of food inflation by the side of 18.32 apiece cent is not comfortable, Basu thought the position is being watched and appropriate dogfight will be taken.
He besides thought with the aim of the jet in food inflation was likely, but not to the area of 18.32 apiece cent, recorded in place of the week ended December 25.
He thought movement of onion, whose charge emerge resulted in spill out in inflation, ought to be facilitated to bring down tax.
Basu thought he will emphasise on facilitating the onion movement by the side of a first acquaintance called by Cabinet Secretary K M Chandrasekhar to take routine of prices soon at the moment.
When asked with the aim of the government did not take steps whilst onion prices were by the side of Rs 40 apiece kg, and woke up solitary whilst the tax shot up to Rs 75-80 a kg, Basu thought, "I am not denying with the aim of near are occasions whilst somewhat earlier moves may well maintain been made, rebuff two ways not far off from with the aim of."
Basu, however, cautioned contrary to using some dull instrument like arbitrary fixing of prices to tame exceptionally prohibitive prices, as such a move results in dearth of wares and check growth.
"There has been increase in intensity in prices. These maintain to be tackled. True. But, we cannot tackle them with dull instruments, it will prime to decelerate down in growth," he thought.