The government is trying to improve the supply of some critical farm products which will help moderate the double-digit food inflation in coming weeks, Finance Minister Pranab Mukherjee said today.
“Food inflation has reached double digit which is a matter of concern. Definitely there is a seasonal factor, but apart from that seasonal factor, there are supply constraints in some critical agricultural products which we shall have to remove,” Mukherjee told reporters here.
Mukherjee hoped that removing supply bottlenecks in food items would have some moderating influence in the coming weeks.
“The monetary policy the Reserve Bank of India has adopted will have an impact but will take some time to have full impact on the demand management and in the short and medium-term we are trying to improve the supply so that the moderating influence of inflation is felt in the coming week.”
After a gap of over five months, food inflation entered the double-digit zone at 10.05 per cent for the week ended August 20, which fanned fears of another hike in policy rates by the central bank in its mid-quarter monetary policy review scheduled to be held on September 16.