“Several members have expressed concern about the rise in prices. I do share their concern, But, I am convinced that the measures that we have put in place, both on the demand side and supply, will help us to moderate inflationary pressures in the months to come.”

While the government was trying to curb inflationary pressures “without adversely affecting the strong growth impulses”, Singh said “it becomes difficult to control the domestic prices when international prices of both petroleum products and and food grains are experiencing a rising trend.”

On agricultural productivity, he admitted that “the pace of progress in agriculture in recent years has not been adequate. It falls far short of what we need and that we should do a lot more to accelerate the process of growth of our agriculture.”

“Our government takes very seriously the challenge of near stagnation in our agricultural production in the months that lie ahead. We will work steadfastly to identify the problems as they vary from one part of our country to another. I have also asked Agriculture ministry and the Planning Commission to work out specific regional plans for the development of our agriculture. We are going to call a meeting of the National Development Council specially to focus on the problems of agriculture and what needs to be done to revitalize our rural economy.”

To step up agricultural growth, he listed certain long-term measures: emphasis on irrigation to be laid in the Eleventh Plan, technological breakthroughs to improve dry-land agriculture through the National Rainfed Area Authority, need for expansion of institutional credit to tackle farmers` indebtedness through an expert group.

... contd.