Inflation will decline in 6 weeks: Cong

Under attack from the opposition on the issue of inflation, the Congress on Wednesday said prices of essential commodities would come down in the next six weeks.

Under attack from the opposition on the issue of inflation, the Congress on Wednesday said prices of essential commodities would come down in the next six weeks.

According to Union Minister and AICC8217;s National Media Committee convenor Kapil Sibal, inflation is set to decline shortly as procurement of wheat and rice has been very good so far and besides, various measures taken by the Government have also started showing results.

Till May 6, 2008 the procurement figures for wheat amounted to 174.4 lakh metric tonnes, as against 88.1 lakh metric tonnes for the same period last year. The Government expected to procure a minimum of 190 lakh MT this year in comparison to 111.2 lakh MT last year.

Rice procurement up to May 6 was pegged at 234.7 lakh MT; it was 215.5 lakh MT for the same period last year. The Government expected to procure at least 270 lakh MT of rice this year.

8220;This is to inform the nation that as far as prices of primary food articles are concerned, there is going to be a decline in the next few weeks,8221; Sibal said at a press conference on Wednesday. He said India remained relatively 8220;insulated8221; from the global rice and wheat inflation. For instance, according to FAO Food and Agriculture Organisation of the United Nations figures, international inflation for rice and wheat was pegged at 55.4 and 117.6 per cent respectively during January-March 2008; as per the WPI, domestic inflation for these two products was pegged at 7 and 0.9 per cent respectively for the same period.

Quoting inflationary trends in several countries, which were much steeper than India, Sibal said, 8220;If political parties were sensitive, they would have congratulated this Government for insulating our people. But because you have hunger for politics, you play politics with hunger.8221;

8216;US consumes more8217;

In an indirect reference to US President George W Bush8217;s recent remarks attributing global food prices to growing consumption by Indian middle classes, Kapil Sibal said the FAO data showed that the US consumed more cereals than either India or China. According to the FAO report, the consumption of cereals by India is projected to have grown 2.17 per cent from 193.1 mt in 2006-07 to 197.3 mt in 2007-08. In the same period, the consumption of cereals in the US has been projected to have grown 11.81 per cent from 277.6 mt to 310.4 mt.