Of course, when there is price rise common people are hit the most. Unfortunately there has been some price rise. The expectation of the people also has increased much more. There was a point of time when the rate of inflation was always what you call in double digits.

I remember in 1974, the rate of inflation had reached up to 24 per cent. In 1980, when we took over power, the rate of inflation was around 18 per cent. In 1991, the rate of inflation was around 16 per cent. What with the GDP growth and with the development now the rate of inflation is moderate. People expect that it should be further moderated. The government will have to do that.

Unfortunately certain commodities, especially pulses, and certain other commodities which are in short supply and which are also not available from the external market put pressure on the price front. The finance minister and the government have taken various measures both from the supply side and from the demand side. Duties have been adjusted, imports have been liberalised,

For instance, the pulses. These are simply not available except in a few countries. Now wheat production has remained stagnant for quite some time. The government is to maintain a huge buffer stock, procure huge quantum to maintain certain flagship programmes like Annapurna Yojana, APL [Above Poverty Line], BPL [Below Poverty Line] supply, at the rate of a specific quantity.

For that the government requires a huge quantum of food grains at the public distribution system. Similarly we shall also have to adjust with the changing food habits. I am told that at one point of time the people in the south did not consume wheat but nowadays they are consuming wheat.

Therefore, if the wheat production remains more or less stagnant over a period of time, these kind of problems will emerge. And that is why the ultimate answer lies in having a major thrust in the agricultural growth, higher production and productivity of food grains and other essential commodities. Image: Women activists from the Bharatiya Janata Party wear onion garlands as they shout slogans against the Congress-led UPA government for rising prices.
Photograph: Raveendran/AFP/Getty Images
Also see: 'We have an unfinished agenda of development'

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