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This refers to “Stoking inflation” (Business Line, March 11). The economy faces a paradoxical situation where the exporters are affected adversely on account of the rupee appreciation against the US dollar, whereas the importers are equally affected due to the increase in the global prices of food and crude oil.

The rupee may be allowed to appreciate further under some pretext but India cannot expect to have any command over world food prices. Let a major chunk of the accumulated foreign exchange reserves be released for the benefit of farm sector to increase production of grains, cereals and pulses.

Price increase across the globe in respect of food items can be addressed only through increased domestic production. The global menace of inflation could only be fought through building up more resilience by proper deployment of resources.

C. P. Velayudhan Nair Kochi

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