FICCI comments on WPI based inflation data

Commenting on the WPI based inflation data released on Thursday, Harshavardhan Neotia, President, FICCI, has said "the increase in wholesale inflation is driven by a jump in food prices. We are seeing continuation of price pressure in case of commodities like pulses and vegetables. Even food products and sugar are experiencing an upward pressure in prices. Dealing with this trend calls for supply side measures both from the point of view of enhanced production and seamless distribution. Our government has taken up a series of measures and with the expectation of a normal monsoon, we hope that these spikes will come under control".

"We need to have greater production of pulses and look at diversifying sources of pulses imports. The recent agreement entered into with the Government of Mozambique on supply of pulses is an encouraging move. Increase in the MSP for pulses and increasing the buffer stocks for the same should also help alleviate price pressure in the future. Further, in case of vegetables, we need to ramp up our storage and distribution network. Better logistics and efficient supply chain management is the key given the perishable nature of these products", Neotia added.