FM cracks down on inflation

Union Minister for Finance Arun Jaitley addresses the State Food Ministers' Conference in New Delhi on Friday. Union Minister for Consumer Affairs, Food and Public Distribution, Ramvilas Paswan is also seen.

He said the test of the good governance is how to de-hoard the stock kept by intermediaries into the market to rein in prices. "This is the biggest challenge."

"Prices of some items had touched Rs 70-100 per kg last year. Prices are still lower this year. There is no panic situation," he said.

FM addresses State Food Ministers' Conference

Union Minister for Finance Arun Jaitley with Union Minister for Consumer Affairs, Food and Public Distribution, Ramvilas Paswan during the State Food Ministers' Conference in New Delhi.

Blaming hoarders for the rise in food inflation, Finance Minister Arun Jaitley today said there is "no panic situation" and asked the states to take measures to crackdown on hoarding and black marketing to rein in prices.

Jaitley, Paswan during a conference

Union Minister for Finance Arun Jaitley with  Agriculture Minister Radha Mohan Singh during the State Food Ministers' Conference in New Delhi.

"When production of food items is higher than last year and still prices rise, then it means that intermediaries are keeping the stock somewhere," Jaitley said at a conference on food inflation.

Jaitley, Radha Mohan Singh during a conference

Union Minister for Finance Arun Jaitley addresses the State Food Ministers' Conference in New Delhi.

The Minister asked the state governments to assess the problem as action taken after price rise creates panic in the market.

The meeting was also attended by Food Minister Ram Vilas Paswan and Agriculture Minister Radha Mohan Singh.

Arun Jaitley during a conference

Union Minister for Finance Arun Jaitley during the State Food Ministers' Conference in New Delhi.

Noting that prices of crude oil have increased due to tension in Iraq, Jaitley said there are, however, indications of softening of prices.

Jaitley also mentioned that prices of onion, potato, rice, pulses and milk have increased because of different reasons.

FM cracks down on inflation

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