Union Agriculture Minister Sharad Pawar, while admitting inflation was a cause for concern, attributed the upward trend to the gap between supply and demand.
Pawar was speaking to reporters after inaugurating the Centre of Excellence for vegetable, under the Israel-India cooperation in Agriculture.
Pawar maintained while the production of a few commodities was increasing, the demand was invariably surpassing the supply, leading to inflation in prices.
He maintained the government was looking to take necessary steps to tame the inflation.
The food inflation, driven by the spurt in food and vegetable prices, soared to 18.32 per cent for week ended December 25.
The minister added, while the government was concerned about food security, it was beyond the ambit of the government to tell farmers to grow specific food items like pulses or vegetables.
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Pawar maintained the government would take all possible steps in the future including allowing of commodities’ import, if required, to tame the inflation.
Commenting on the spiraling prices of onion in the country, which he termed as a temporary phase, Pawar blamed the untimely rain in the state of Maharashtra which according to him has damaged 70 per cent of the onion crop.
He maintained, the arrival of fresh onion crops in the market could only help cool down the prices of the bulb.
The minister revealed to boost the milk production in the coming years, the government had planned Rs 17,000 crore project in assistance with the World Bank, which would help the dairy production in the country to move up.