Govt to look at imports to curb inflationary pressures

Responding to concerns over the rise in inflation to 5.45 per cent, Finance Minister P Chidabaram said on Sunday that there was a supply-side constraint on essential commodities like pulses and the government would look at higher duty-free imports to curb these pressures.

However, addressing the third convocation ceremony at the Symbiosis International University, he pointed out that only Myanmar and a few other countries grew the different varieties of lentils and pulses eaten in India, and so the only durable solution was to augment production.

"We have raised the sowing area for pulses as well as wheat, which will increase production capacities," said Chidambaram, adding that there were no shortcuts to addressing the problem as the crop would take time to harvest.

He urged the state government to implement the 7 per cent short-term interest rate on loans issued to farmers.

The FM was also open to reviewing the ban on export of sugar as and when the crop came into the market.

Speaking on the importance of education in making India the third largest economy by 2050, he said, "The international experience is that a Gross Enrolment Ratio of 20 per cent is needed for rapid and sustainable economic growth. Our plan is to achieve a GER of 15 per cent by 2012, the last year of the 11th Five Year Plan."