Food prices to fall to 'reasonable levels' by Sept: Montek

Subscribe to Oneindia News

Planning Commission Deputy Chairman Montek Singh Ahluwalia
Bangalore, June 10: Planning Commission Deputy Chairman Montek Singh Ahluwalia today (June 10) said he expects the monsoon rains and good macro management of the sector to bring down high food prices to "reasonable levels" by September and October.

"Our current assessment is that food inflation at the moment is too high, but there is no domestic shortage. Cereals are in a very good shape... we have more than enough stock. With good macro management and likely good monsoon, by September-October, we will finally be able to bring price level and inflation rate down to a reasonable level", he said.

Ahluwalia was speaking to reporters after the Regional Consultation of Planning Commission with Southern States on the Approach paper to the 12th Plan.

He said he was aware that inflation was higher than the target set, but added that one should not forget that such forecasts are also subject to external factors like the global food supply. "This puts upward pressure on prices", he said.

To a question on the infrastructure debt fund, he said, "In the 11th plan, we had an ambitious target for infrastructure. We think in the 12th plan, there has to be practically double the volume of investments that we achieved in infrastructure in the 11th plan".

PTI

Please Wait while comments are loading...