Inflation rate unlikely to soften before Dec-end: Montek

Our Bureau Updated - October 20, 2011 at 06:35 PM.

‘Twelfth Plan envisages major improvement in agricultural marketing'

The inflation rate is not likely to soften before November. In fact, it may start softening by December-end and may go below 8 per cent only by March 2012, said Mr Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission.

Addressing the Economic Editors' Conference here on Thursday, Mr Ahluwalia outlined the Plan panel's approach to the 12{+t}{+h} Plan. He said agricultural growth, rising urbanisation, energy, land, water and delivery of public services were among the key challenges ahead.

“The 12th Plan envisages a huge improvement in the marketing of agricultural products. For this, the monopoly of

mandis and middlemen needs to be removed to ensure a fair price to small and marginal farmers,” he said.

Pitching for the modernisation of retail and marketing, Mr Ahluwalia said the monopoly of

mandis needs to be removed. For this, the States need to play a larger role, he added.

On public-private partnerships (PPPs), Mr Ahluwalia said he was in favour of these projects being brought under the purview of the Right to Information Act (RTI), but questions should be directed at the Government agency monitoring a project. “Only Government agencies should be answerable under RTI,” he said.

As regards growing urbanisation, Mr Ahluwalia said a new Jawaharlal Nehru Urban Renewal Mission was needed. “The modalities of the new scheme are being worked out by a committee in consultation with the Urban Development Ministry,” he added.

When asked about the resources for the new scheme, Mr Ahluwalia said raising user charges was on option for mopping up more funds for urban infrastructure.

The Plan panel Deputy Chairman also hinted at a major expansion of public expenditure on health and education.

Published on October 20, 2011 13:05