Observing that the rise in global prices of petrol and diesel impacts domestic food inflation, the Agriculture Minister, Mr Sharad Pawar, has said the solution to the problem lies in increasing farm productivity to bring down prices.
“Global developments like a rise in prices of petrol and diesel impact domestic food inflation,” Mr Pawar told reporters on the sidelines of an international agriculture conference here today.
He said the solution to the problem lies in increasing agriculture productivity. Food inflation rose to a nine-month high of 12.41 per cent for the week ended October 22.
The minister stressed on the need for greater innovation in agriculture to enhance farm output.
Asked if the food habits of people are putting more pressure on certain food products, Mr Pawar said it was true that demand has increased in some items like fruits, milk, meat, egg and fish.
While demand for these times has gone up, production has also increased in these items, he said, adding that the country needs to enhance the output further.
For instance, milk production has increased by 3 per cent, but demand has gone up by 6 per cent. This is the situation, but the solution is that we must increase production, he said.
Mr Pawar, who is also the chief of the NCP, a coalition partner of the UPA government at the Centre, said increasing cane prices in Uttar Pradesh by Rs 40 was a routine administrative decision and giving credit for this to the Uttar Pradesh Chief Minister, Ms Mayawati, was not justified.
The UP Assembly has decided to raise cane prices for the benefit of farmers, but Mr Pawar dubbed the move a “routine administrative decision’’.
The Uttar Pradesh Government had yesterday hiked cane prices by Rs 40 to a maximum of Rs 250 per quintal.