Reserve Bank of India fears increase in prices

New Delhi, Aug 18 (ANI): The Reserve Bank of India (RBI) on Tuesday said that prices are likely to go up this year due to erratic monsoon.

"Erratic monsoon may put pressure on inflation," said K C Chakrabarty, Deputy Governor, RBI on the sidelines of a meeting of the Regional Rural Bank chiefs.

On rescheduling of farm loans because of the uncertain monsoon this year, he said that is an issue for next year.

Earlier, an Empowered Group of Ministers (EgoM), headed by Finance Minister Pranab Mukherjee, was set up by the Centre to tackle drought situation in nearly one-fourth of the country.

EgoM includes Agriculture Minister Sharad Pawar, Home Minister P Chidambaram, Railway Minister Mamata Banerjee, Planning Commission Deputy Chairman Montek Singh Ahluwalia, and Power Minister Sushil Shinde.

Other members include Rural Development Minister C P Joshi, Petroleum Minister Murli Deora and Urban Development Minister Jaipal Reddy.

As many as 161 districts out of over 600 have been declared as drought-hit in the country.

The EGoM will take decisions and approve new and innovative schemes, besides examining the existing schemes for suitable modification.

The term of reference for the EGoM includes assessment and monitoring of the situation arising out of drought and deficient rainfall. (ANI)