Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: 4.0
Article rating: 5.0
Article rating: No rating
Article rating: 4.0
Article rating: 3.8
Article rating: 2.9
Article rating: 2.3
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
RSS

News

Good farm produce, price curbs have brought inflation under control: Economic Survey

Author: IANS/Tuesday, January 30, 2018/Categories: Economy

Good farm produce, price curbs have brought inflation under control: Economic Survey

New Delhi - Headline inflation measured by the Consumer Price Index (CPI) has remained under control for the fourth successive year which "has been possible due to good agricultural production coupled with regular price monitoring by the government", the Economic Survey 2017-18 said.

"In fact the decline in the inflation in the first half of the current fiscal year was indicative of a benign food inflation which ranged between (-) 2.1 to 1.5%," the Survey placed in Parliament by Finance Minister Arun Jaitley revealed.

According to the Survey, inflation in the country continued to moderate during 2017-18 with the CPI based headline inflation averaging 3.3% during the period -- the lowest in the last six financial years.

The Survey pointed out that the decline in the inflation was broad-based across major commodity groups except housing and fuel and light.

"The headline inflation has been below 4% for twelve straight months, from November 2016 to October, 2017 and CPI food inflation averaged around one per cent during April-December in the current financial year," said the Survey.

However, the rise in food inflation in recent months is mainly due to factors driving prices of vegetables and fruits, it said.

"In rural areas while food was main driver of CPI inflation during 2016-17, in urban areas housing sector has contributed the most to inflation in the current financial year," the Survey highlighted. 

State-wise inflation data during the fiscal showed that many states witnessed sharp fall in CPI inflation with 17 states' inflation below 4%.

This has been possible due to various efforts made to contain inflation at various level by the government, said the Survey.

The Survey also highlighted the measures taken by the government for controlling inflation like issuing advisories as and when required to state governments to take strict action against hoarding and black marketing for commodities in short supply, and holding regular review meetings at the highest level on price and availability situation.

"Higher MSP (minimum support price) has been announced so as to incentivise production and thereby enhance availability of food items which may help moderate prices. A scheme titled Price Stabilisation Fund (PSF) is being implemented to control price volatility of agricultural commodities like pulses and onions," the Survey pointed out.

"The government approved enhancement in buffer stock of pulses from 1.5 lakh MT (million tonne) to 20 lakh MT to enable effective market intervention for moderation of retail prices. Accordingly, a dynamic buffer stock of pulses of upto 20 lakh tonne has been built," it added.

In its control measures, the government imposed 20% duty on export of sugar for promoting availability and moderating price rise, and permitted import of 5 lakh tonne of raw sugar at zero duty along with additional 3 lakh tonne at 25% duty.

"Export of all varieties of onion will be allowed only on letter of credit subject to a minimum export price (MEWP) of $850 per MT till December 31, 2017. States/union territories have been advised to impose stock limit on onions," the Survey added.

Print Rate this article:
No rating

Number of views (158)/Comments (0)

rajyashree guha

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free