Supply constraints still exists in some commodities, says Chandrasekhar

Subscribe to Oneindia News

New Delhi, Nov.16 (ANI): Cabinet Secretary K.M. Chandrasekhar on Monday said that supply constraints still exist in some commodities but the situation was not peculiar to India.

"There have been supply constraints in particular commodities as the overall rate of inflation is just over one percent, as you know, in particular commodities there has been, not only in India but globally, there have been supply constraints which is reflecting in this. Number of measures have been taken and I think the import duties have been removed on most of these goods, free import is allowed, procurement is doing well, did well the last year, it did well the year before and this year it is even better than before," K. M. Chandrasekhar, Cabinet Secretary told reporters in the national capital.

The government cut duties twice since December and stepped up public spending. The Reserve Bank of India has been slashing its policy interest rates to pump in extra cash to stimulate a slowing economy.

The Reserve Bank of India is trying to balance between growth concerns and rising inflation as poor monsoon has hit agricultural growth, leading to supply concerns in the world's second-most populous country.

Annual wholesale inflation accelerated in October from a month earlier and analysts expect monetary tightening from next year as the economy picks up.

The Indian economy grew 6.7 percent in 2008/09 (April-March), slowing from 9 percent or more in the previous three years. (ANI)

Please Wait while comments are loading...