New Delhi, Aug 4: In his reply to the discussion on the Motion on Inflationary pressure on the economy, Finance Minister Pranab Mukherjee listed out the reasons behind the price rise.
Bad monsoon led to low production in 2009. It is now affecting the prices as the pulses and vegetables are still in short supply, the minister said on Wednesday, Aug 4.
“At present, we are facing around 15 percent short supply of pulses in the domestic market," Mukherjee said.
He also attributed the spiraling prices to the government"s decision to increase the Minimum Support Price (MSP) of wheat and paddy and the administered price of sugar cane.
“The decision was increase MSP was not a populist measure. It was hiked to boost production so that the soaring demand can be met. But production did not go up last year due to bad monsoon," he told the Lok Sabha.
In the wake of the reports of grains being left out in the open leading them rot, the finance minister assured the lower house that the Centre will be taking steps to build more warehouses.