The Hindu Business Line : CCP takes stock of price situation

NEW DELHI: Amid impact of flood in Bihar, Assam and other states on prices of essential commodities, the government on Thursday took stock of the situation.

Cabinet Committee on Prices, chaired by Prime Minister Manmohan Singh, was briefed about the stock and prices of foodgrains, edible oils and other commodities.

The CCP was also briefed about the impact of floods on cultivation and the prices, particularly foodgrains. Sugarcane, paddy and maize are widely grown in north Bihar, which has been severely affected by floods.

According to sources, the CCP was informed that despite floods in some states, the prices of food commodities have begun showing downward trend.

Inflation, which is well above the 12 per cent mark, has remained an area of serious concern for the government which has been taking a number of steps to check the price rise.

However, the government is expecting inflation to come down to 8-9 per cent in coming months with the international crude oil prices declining to $109 a barrel from all time high of $147.27 per barrel on July 11.

The Committee of Secretaries which met on Wednesday deliberated on further options to rein in inflation.

On possibility of fall in prices, Finance Minister, Mr P Chidambaram said last week that it was too early to draw a conclusion on a slight drop in inflation. “I don't think any conclusion can be drawn from weekly data,'' he said.

Government and the Reserve Bank have taken various steps to cool off inflation such as raising interest rates, removing or slashing import duties and putting export restrictions on number of essential items. - PTI

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