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Check on hoarding moderates inflation: PHD Chamber

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Capital Market
Last Updated : Jul 15 2014 | 11:55 PM IST
Decline in WPI inflation at a time when the country is facing deficient monsoon is really appreciable, said Mr. Sharad Jaipuria, President, PHD Chamber.

We appreciate the measures undertaken by the government to check hoarding and facilitating the supply chain in various essential commodities, said Mr. Jaipuria.

The WPI inflation for the month of June 2014 declined to 5.43% from 6.01% in May 2014. The decline in WPI inflation is attributed mainly to steep decline in the prices of vegetables and onions.

The imposition of Minimum Export Price on onions last month to control its prices has facilitated decline in inflation of onions which is a good initiative taken by the government, he said

Onion exports have been estimated at 3 lakh tonnes the first quarter of the current fiscal, a drop of 44.34% compared with the 5.39 lakh tonnes during the corresponding period in the last financial year.

The recent announcements made in the Union Budget to improve agriculture infrastructure would go a long way to facilitate farm produce to deliver at consumers' doorsteps, he said.

Going ahead, to mitigate the impact of bad monsoon behaviour, the government should ensure increased power supply to farmers so that the sowing process is completed without delay, said Mr. Jaipuria.

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First Published: Jul 15 2014 | 4:02 PM IST

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