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Sunday, March 03, 2013


WILL THE FOOD INFLATION COME DOWN NOW....??!!
(i) The FM has allocated a sum of Rs.50 bn for construction of warehouses, go-downs, silos and cold storage units. These units will be used to store agricultural produce, both in the public and the private sectors. To that extent, the wastage on food-grains is sought to be reduced.

(ii) The interest subvention scheme for providing short term crop loans to farmers at 7% interest has been continued for 2013-14, with additional subvention of 3% for prompt paying farmers. The scheme has been extended to private sector banks also.

Therefore, the FM has tried to give higher focus on removing supply bottle-necks. It seems the move was prudent, when we are in challenging fiscal circumstances, where effective implementation rather than high spending is expected to give more optimum results.

BUT STILL THE QUESTION REMAINS, "Will the Food Inflation Come Down?" It is because we have a notorious traders' lobby, which tried to sabotage the FDI in Retail Bill.