In the run-up to the elections, the BJP top brass maintained that the problem of spiraling inflation is specifically on account of supply-side bottlenecks and that raising interest rates, while being ineffective in tackling core inflation (non-food, non-fuel inflation), only served to dampen a demand-led recovery. The BJP’s hard stand against FDI in multi-brand retail notwithstanding, the recommendations include fostering competition by way of promoting retailing through the “organised sector and cooperatives”.
* Ministerial-level coordination mechanism at the national/ regional level
* Priority sector lending to agri-marketing activities
* APMC Act reform across the country, liberalisation of agri markets
* Time-bound development of agri marketing infra — storage capacities in food deficit regions, cold chain, agro-processing
* Unbundling of FCI operations of procurement, storage and distribution
* Increase competition by promoting retailing by organised sector and cooperatives
* Setting up a price stabilisation fund