Indian official expects no immediate respite from high food prices

Indian Agriculture Minister Sharad Pawar Wednesday said that it is highly unlikely that soaring food prices will come back to reasonable levels in the near future.

Citing the poor monsoon this year as the reason, Pawar added that the prices of food items are expected to stabilize after the harvest season early next year.

Speaking at the Economic Editors conference here, the minister also informed that the government targets additional production of8.5 million tons of food grain and 1.5 million tons of oilseeds in the rabi season this year to compensate for the loss of farm output in the summer season.

"Improved soil moisture due to late monsoon rains has improved the prospect of rabi crops throughout the country," he said.

Food grain production was around 116 million tons in the rabi season last year.

The government expects sugar production at 16 million tons in 2009-10 Season against 15 million tons in the last season.

According to official estimates released on Wednesday, the country's food grain production, including rice, coarse grains and pulses, would be down by over 21 million tons at 96.63 million tons in the summer crop due to the impact of natural calamities.

Under the impact of drought and partly floods, rice production is estimated to dip by 15 million tons to 69.45 million tons in the kharif harvest.

Reacting to Pawar's statement on price rise, the opposition Bharatiya Janata Party (BJP) said the minister should step down if he is unable to check inflation.

Source: Xinhua