New Delhi: Finance Minister Pranab Mukherjee Tuesday cautioned that inflation could be in double digits in March though the government is taking all steps to protect the vulnerable sections from price rise.
"I will not be surprised if it (inflation) reaches double digit in March," he said while replying to a debate on the Budget 2010-11 in the Rajya Sabha.
The general inflation has already touched 9.89 percent in February.
He, however, said that high inflation was partly due to low base last year. Last year, during this time inflation in case of many commodities was in the negative range and, therefore, this impact may continue till May-June this year.
Replying to charges that the government was not releasing surplus foodgrains from buffer stocks, he said: "The Centre has offered the states to lift three million tonnes of wheat and one million tonnes of rice for open market sale."
If states ask for more, the Centre will provide that. "But we cannot throw it in the streets," he said.
Prime Minister Manmohan Singh had recently convened a meeting of states to identify areas of food inflation so that vulnerable section of the society could be protected from the impact of price rise.
Inflation figures for March would be released in April.
Food inflation, data of which is released on weekly basis, dropped to 17.81 per cent towards the end of February from 17.87 in the previous week.
On year-on-year basis, pulses were dearer by 33.38 percent, slightly lower than over 35 per cent in the previous week, while potatoes turned costlier by 22.46 per cent. Onion rose by just 2.98 percent.
Overall vegetable prices shot up by 15.61 per cent, while milk prices were up 15.31 per cent and fruits 11.77 percent.
Food and Agriculture Minister Sharad Pawar had said that food prices would start easing once the rabi (summer) harvest came into market in April.
The production of wheat, a major rabi crop, is estimated at 80.28 million tonnes, slightly lower than last year's record output of 80.68 million tonnes. The bumper production should result into good procurement.
Already, at the beginning of this month, the government had 183.88 lakh tonnes of wheat and 269.5 lakh tonnes of rice -- which is much more than buffer norms.
PTI
First Published: Tuesday, March 16, 2010, 18:30