Prime Minister Manmohan Singh on Tuesday met with his ministerial colleagues to figure out ways to deal with spiraling food prices. The PM is looking to streamline the reasons behind the price escalation and find ways to prevent its re-occurrence.
The meeting has come at a time when inflation is at more than 18 per cent and the Opposition has been attacking the government for failing to control food prices.
However, the government wants to move cautiously, so as not to affect growth. It may look at taking moderate measures initially.
Along with ministers like Sharad Pawar and Pranab Mukherjee, Planning Commission deputy chairman Montek Singh Ahluwalia and economic advisor Kaushik Basu were also present in the meeting.
According to sources, the meeting may be resumed either Wednesday or in the next few days as the group of ministers have almost finalised a roadmap to tackle inflation. The measures, however, will be discussed again in the presence of Pranab Mukherjee who had to leave early due to prior appointments.
Sources also say that the Prime Minister's office is likely to come out with an announcement of these measures Wednesday. Most government measures till now, like raiding onion traders or slashing import duty or even tightening monetary policy, seem to have achieved little.
Retail Onion prices continue to remain at Rs. 60-65 a kg and inflation worries has not only spooked the stock market but India's growth target is also under question now.
Source; http://profit.ndtv.com/news/show/pm-calls-high-level-meet-to-tame-inflation-135515?pfrom=home-Business