Prime Minister Manmohan Singh on Friday said the economy would return to 9% growth rate in two years, while assuring the nation that the government would take all practical measures to combat food inflation that touched a decade high of 19.7% last December.

Replying to the debate on Motion of Thanks to the President?s Address in the Lok Sabha, he said the government was working to overcome the twin-impact of failure of monsoons and global economic crisis with an objective of reaching the double-digit growth. He said the country will achieve a growth of 7.2-7.5% in the current fiscal, 8% in 2010-11 and 9% in 2011-12.

?I am confident that economic fundamentals are strong. If we manage our economy well, if we manage creation of social infrastructure well, there is no barrier to India?s entry in the age of double digit growth,? Singh said in his 55-minute speech.

Responding to concerns expressed by members over rising food prices, he said the government has been equally concerned over the ?behaviour of food prices? over the last one year. He said certain steps have been taken to address the situation and the government was ready to take ?any practical? measure that would give relief to people.

Singh, however, asserted that there should be ?no panic on the food situation front? in view of comfortable level of food stocks that are available with the central government. Rabi crop (winter) prospects are also very encouraging. Post-monsoon rains have been good. All this augurs well for food prices to stabilise at a reasonable level, he added.

Singh, though, admitted to government?s failure on the sugar front which led to steep rise in prices of the commodity and said ways and means need to be explored to see that crisis does not recur. ?If there is a failure of economic policy, it is with regard to sugar….we have not been able to find a practical and pragmatic way to deal with the cyclical behaviour of sugarcane production,? Singh said the Rajya Sabha.

?I do admit weakness,? he said about the government?s failure to realise the cyclical nature of the crop which changes every 2 to 3 years. His statement assumes significance as Food and Agriculture Minister Sharad Pawar has been attributing the sharp increase in sugar prices to the cyclical nature of the crop.

Pawar has been under attack over food inflation, particularly sugar. Even sections within Congress have been unhappy with his handling of the crisis. The Prime Minister, however, rejected the Opposition charge of a scam in sugar saying exports were negligible and carried out for meeting the country?s international obligations.