Govt to take a call on price rise today

Written by Economy Bureau | New Delhi, Mar 30 | Updated: Mar 31 2008, 07:07am hrs
The Cabinet Committee on Prices will meet on Monday to figure out how to curb the rising inflation and keep essential commodities from being dearer. The committee might consider fiscal measures to reverse the trend.

Over the weekend, finance secretary D Subbarao had said the high inflation was quite disconcerting and attributed the price rise to high global commodities rates..

Commerce minister Kamal Nath on Friday said the government was looking at a proposal to ban non-basmati rice exports. He also said the government might recommend scrapping of the import duty on steel after the metal and food prices pushed inflation to over a years high of 6.63%.

A government official said a high-level ministerial meeting would be held on Wednesday after the Cabinet meet to consider measures for maintaining adequate supply in the face of a global pressure on prices.

Experts said the Reserve Bank of India might tighten money supply further.