INDIA’S FINANCE MINISTER SAYS THAT RISING FOOD PRICES WILL EASE AFTER JULY
By ANITuesday, June 15, 2010
NATURAL WITH ENGLISH SPEECH
DURATION: 2.15
SOURCE: ANI
TV AND WEB RESTRICTIONS: NO ACCESS BBC
India’s Finance Minister says that rising food prices will ease after July.
India’s Finance Minister Pranab Mukherjee says that rising food prices will ease after July and that he does not favour altering monetary policy.
SHOWS:
PATNA, BIHAR, INDIA (JUNE 14, 2010) (ANI- NO ACCESS BBC)
1. PRANAB MUKHERJEE, INDIA’S FINANCE MINISTER, AND OTHERS ARRIVING
2. MUKHERJEE AND OTHERS SITTING ON DAIS
3. (SOUNDBITE) (English) PRANAB MUKHERJEE, INDIA’S FINANCE MINISTER, SAYING: “The food inflation is rising and it has already reached … the wholesale price index has also reached double digit figure and in the month of March it was 9.8 percent, now it has reached double digit. It will continue till the middle of July because after July when the trend of monsoon will be well known and I think the inflationary pressure on the food items would (then) start coming down.”
4. MUKHERJEE AND OTHERS SITTING ON DAIS
5. (SOUNDBITE) (English) PRANAB MUKHERJEE, INDIA’S FINANCE MINISTER, SAYING: “On the monetary side, we have taken steps in the last monetary policy which was announced by the RBI which you have noticed that the basic rates have been increased by 25 basis points. CRR has been increased from 5.75 percent to 6 percent, REPO rate and reverse REPO rate, - both of these have increased by 25 basis points. Therefore, through these exercises some excess liquidity has been mopped up from the market. But while taking the monetary policy we shall have to keep in mind the legitimate credit requirement of the industry is not affected….”
6. MUKHERJEE AND OTHERS SITTING ON DAIS
STORY: India’s Finance Minister Pranab Mukherjee on Monday (June 14) said that food prices would ease after July and that he was not in favour of altering monetary policy.
Mukherjee said that the inflation had touched 10.16.
The Reserve Bank of India (RBI) expects inflation to soften around mid-2010 on a normal monsoon and moderation in food prices and has forecast the March 2011 WPI inflation at 5.5 percent.
“The food inflation is rising and it has already reached … the wholesale price index has also reached double digit figure and in the month of March it was 9.8 percent, now it has reached double digit. It will continue till the middle of July because after July when the trend of monsoon will be well known and I think the inflationary pressure on the food items would (then) start coming down,” said Mukherjee, in eastern Patna city.
The unexpectedly high inflation has heightened expectations the RBI would raise rates before its scheduled July review despite concerns over Europe’s debt crisis.
“On the monetary side, we have taken steps in the last monetary policy which was announced by the RBI which you have noticed that the basic rates have been increased by 25 basis points. CRR has been increased from 5.75 percent to 6 percent, REPO rate and reverse REPO rate, - both of these have increased by 25 basis points. Therefore, through these exercises some excess liquidity has been mopped up from the market. But while taking the monetary policy we shall have to keep in mind the legitimate credit requirement of the industry is not affected…,” said Mukherjee, after meeting the heads of government-owned banks in eastern Patna city to review the annual performance of banks for the year 2009-2010.
Industrial output in April grew at a much faster-than-expected 17.6 percent, with manufacturing growth matching its strongest pace in at least 15 years, providing further evidence of a firm rebound in the economy.
Robust economic growth has raised the prospects of capacity constraints, which are seen aggravating price pressures.
