RBI Board asks FM to focus on edible oils, milk and fertilisers

New Delhi, Mar 9 (UNI) After getting a mandate from the RBI Board on his Budget proposals, Finance Minister P Chidambaram today said his Ministry will support all future measures which the Central Bank will take to curb inflation, adding that the Board has asked him to give special focus to certain commodities, including edible oils, milk and fertilsers.

"The Finance Ministry was in alignment with the measures the RBI has taken to bring down prices. The Ministry will also support the measures which the RBI will take in future to control prices," Mr Chidambaram told reporters after the customary post-Budget meeting with the Board of the RBI.

Along with Mr Chidambaram was present RBI Governor Y V Reddy. The meeting took place in the RBI office at Sansad Marg.

Mr Chidambaram said the Board supported the thrust of the Budget 2007-08 and in particular the emphasis on social sectors, like education and health, as well as agriculture.

The Finance Minister said he told the Board what Prime Minister Manmohan Singh had told Parliament yesterday, namely, that while it was important to control inflation it should not be done by sacrificing growth.

"Well that is easier said than done. But it has to be done," Mr Chidambaram quipped.

The Finance Minister was categorical that inflation will be moderated.

Mr Chidambaram said Dr Reddy pointed out that unlike previously, in the last three years the oil shock has been managed without any instability.

He said the supply side constraints need to be eased out and the Board felt that there was need to focus on managing the prices and hiking the production of edible oils, milk and fertilisers.

UNI