Demand-supply gap of essential commodities needs to be reduced: FM

Mumbai, Mar 28 (UNI) Concerned over the inflation rate crossing the ''danger mark'' of over 6.5 per cent today, Finance Minister P Chidambaram stressed the need to close the demand-supply gap in essential commodities, including cereals and crude.

Delivering the valedictory address at the cenetnary year celebrations of the Indian Merchants' Chamber (IMC) here today, Mr Chidambaram said there was a greater need to take cognisance of the rising inflation.

''We have to note every major to moderate inflation, including fiscal and monetary, and close the demand-supply gap by increasing the production of the items we are dependent on as import and their prices are rising,'' he said.

Mr Chidanbaram pointed out that in the recent past, commodities, crude oil and food prices have sharply risen.

''If we are importing these item, we are actually importing inflation,'' he observed, adding ''We cannot be self-sufficient in all of them, but we have to be self-sufficient at least in rice, wheat, pulses, edible oil and sugar.'' MORE UNI PP/CP MAZ PBB KN2015