Food prices may not abate in 3 months, says Pawar

Thu, Nov 5 01:50 AM

With food prices showing a little signs of abating, the government Wednesday said that it is planning to bring additional areas under rabi crops to ease the supply pressure.

However, it stopped short of giving any timeframe as to when inflation in food articles would cool off.

"Inflation in food articles is a matter of concern and the government have taken several steps to arrest the increase in prices of these commodities," food and agriculture minister Sharad Pawar told the 'Economic Editors' conference, adding that the situation will change once the rabi (winter) crops are harvested.

According to the government's own data, wholesale prices of food articles went up by about 13% year-on-year for the week ended October 17. Pulses rose sharply by 23%. Drought conditions early this year and floods that followed are estimated to have hit food grain production, this could be over 21 million tonne short during this kharif season, the government said on Tuesday. Rice output is estimated to fall by over 15 million tonne and coarse cereals 5.5 million tonne.

Pawar said the government has set a target of surpassing last year's rabi food grain production by 8.5 million tonne to partly offset losses due to decline in output of summer-sown crops following drought and floods.

"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," Pawar said.

The government has also set a target of additional 1.5 million tonne each of oilseeds and coarse cereals and 1 million tonne of more pulses during the winter on expectation that area and yield would be increased.

However, Pawar admitted that there is a gap between rice production and demand this year but affirmed that the government has enough stocks to run the Public Distribution System (PDS).

The government had a stock of 15.34 million tonne of rice and 28.45 million tonne of wheat in its buffer stock as on October 1. "

We are expecting shortfall of paddy. But we will be able to protect the interest of the vulnerable sections of society because there is sufficient stocks in the government go-downs for public distribution. But still, there is a gap between demand and availability," he said.

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