Excessive fiscal, admin steps can harm farmers

"We have taken required fiscal and monetary measures like scrapping of customs duties and banning exports," Consumer Affairs Secretary Yashwant Bhave said while replying to a query on double-digit inflation. He, however, said "ban cannot be a long-term solution".     

Bhave said: "If you keep on banning, then farmers will be discouraged to continue their farming activities".    

 The Secretary favoured proper balance between interests of consumers and farmers.     

On rising inflation, Bhave said: "Though the Indian inflation has increased in the past couple of months, it is still much lower than other neighbouring countries".     

Inflation today touched 11.89 per cent for the week ended June 28 from 11.63 in the previous week.     
Citing examples, Bhave said the inflation in Pakistan is 11 per cent, while it is 25 per cent in Vietnam, 17 per cent in Afghanistan, 26.2 per cent in Sri Lanka, 23 per cent in Argentina, 29 per cent in Venezuala, 20 per cent in Myanmar and 14 per cent in Russia.     

In China, he said inflation is only 8.7 per cent but pointed out that food inflation is over 20 per cent.     

Bhave said though inflation in developed countries like the US, UK and Japan is much lower but when compared with last year the prices have doubled.     

However, he noted that rise in food prices in developed countries does not affect consumers much as their expenditure on food items is only 15 per cent against 40 per cent in our country.