Will hit procurement and distribution

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Inflation may touch 10% by end MarchInflation up at 0.83% on higher food pricesHoarding drives food inflation by 16.32%Inflation a matter of concern: FM

: bring technology to our farms. Without technological and scientific breakthroughs, our yield will remain pathetically low compared with other countries.

On account of the growing mismatch between demand and supply, we will often have to resort to imports. Such imports take place when there is a panic situation. We have to develop scientific methods of crop forecast to ascertain production and the likely deficit to eschew such shortages, which are external to the distributive trade. Significantly, this year, world over, there has been an increase in the price of foodgrains. The recent WTO Doha round negotiations failed on account of the polarisation on the trigger for applying benchmarks for export restrictions. Also, in the recent past, fuel prices have skyrocketed, leading to increases in the price of foodgrains.

The political economy is highly sensitive to price increases, particularly of basic food items. All efforts have to be taken to maintain price levels and avoid hoarding by undesirable elements. This can be done in two ways: licensing stockholders and by making it mandatory for licence holders to file returns regularly about their stocks. This would bring greater transparency in stockholding. It would also help to monitor the availability of foodgrains and induct greater accountability on the part of the trader.

The distributive trade is an important segment of the economy. It has been playing an important role in distributing goods at affordable prices to every nook and corner of the country. It is an efficient system that has been developed independent of the government. Not many countries can claim to have an efficient distribution system as we have in India. We have to nurture the time-tested system. Any effort to impose undue control on the trade would affect inclusive growth. Importantly, such measures, would breed inefficiency and corruption.