Zee Media Bureau
New Delhi: Hoarders are taking advantage of the forecast of below normal monsoon, Finance Minister Arun Jaitley said on Friday.
After meeting with state food ministers today, FM said during July-December every year, prices of some food items increase because of hoarding.
The meeting has been chaired by Finance Minister Arun Jaitely and presided over by both Food Minister Ram Vilas Paswan and Agriculture Minister Radha Mohan Singh.
The government is worried about the impact of Iraq crisis on crude oil, though there were indications of moderation in prices in the last few days, Finance Minister said.
India imports nearly two-third of its oil requirements.
Jaitley, however, said onion prices are lower than last year, so there is no panic situation.
State governments should take stern action against hoarders to rein in prices and the Centre will give complete support, FM said.
Despite government measures, prices of some food items especially onion and potato have been rising even as their production is sufficient on likely below normal monsoon.
During May, the overall inflation rose to a five-month high to 6.01 percent, while food inflation to 9.50 percent due to rising prices of essential food items like vegetables, fruits and cereals.
With agency inputs
First Published: Friday, July 04, 2014, 11:34