Montek meets PM, reviews price situation

Meeting is seen as significant as the govt is drawing extensive plans to fight rising food prices.

Planning Commission Deputy Chairman Montek Singh Ahluwalia today met Prime Minister Manmohan Singh and is believed to have discussed the price situation and impact of delayed monsoon on farm sector output.

The meeting is seen as significant as the government is drawing extensive plans to battle rising food prices, which many expect to go up further in view of poor monsoon in large parts of the country.

Unhappy with the efforts taken by the government to tackle the price situation, the opposition led by NDA walked out of Lok Sabha yesterday - the last day of the Budget session.

Earlier in the day, Singh, in his meeting with the chief secretaries of states, underlined the need for taking strong action against hoarders and black marketers to check the upward spiral in prices of essential goods.

"In short, the contingency plan for crops, drinking water, human and animal health, fodder, etc should be brought into operation without delay and a close watch kept on availability of food grains and prices of essential commodities," he told the chief secretaries.

About 141 districts, out of over 600 in the country, have been declared drought affected by various states.

Reduction in farm output on account of delayed monsoon, the Prime Minister warned, "may have an inflationary impact on prices of food items in coming months."