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Key secretaries meet to review price situation

The prospect of delayed monsoon due to El Nino effect could adversely impact food prices.

By: ENS Economic Bureau | New Delhi |
June 8, 2014 2:50:17 am

With concerns over the monsoon rains due to the impact of the El Nino, top government officials led by Cabinet Secretary Ajit Seth on Saturday reviewed the current price situation and possibility of a spurt in inflation due to delayed monsoons.

“It is a periodic meeting. It was taken to review the position of food stock and prices of essential commodities,” said a senior government official.

However, the meeting, which was attended by senior officials from the ministry of finance and commerce, comes soon after the new government took over at the Centre that has listed out curbing price rise as one of its key priorities.

Although the south-west monsoon has hit the Kerala coast after a delay of four days, it is expected to remain “sluggish” and may proceed to central India only after June 25.

Around 60 per cent of agriculture production is dependent on monsoon and the delay in monsoon arrival is likely to adversely impact prices of essential commodities.

In its fight against stubborn inflation, the Reserve Bank of India in its bi-monthly monetary policy review earlier this month had kept the key interest rate unchanged at 8 per cent. The inflation, measured on Wholesale Price Index (WPI), was 5.2 per cent in April.

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