New Delhi, Aug 19: Even as the Prime Minister tries to calm the states and the people over the drought crisis, Reserve Bank of India reveals more disturbing news. RBI on Tuesday, Aug 18 said that the lack of Monsoon may led to further rise in prices of essential commodities.
"The erratic monsoon may put pressure on inflation and could increase the prices," RBI Deputy Governor KC Chakrabarty said.
As the southwest monsoon is below the normal level, India faces severe drought. As on Aug 12 the overall monsoon was 29 pc below the normal level.
This comes amid the PM-CMs meet focussing on the drought and the spiralling prices. Dr Manmohan Singh on Tuesday, Aug 18 told the CMs not to panic over drought crisis.
However, the RBI deputy governor said that the adverse effects of the drought could be avoided to a certain extent by taking the right measures.