Replying to the debate on the Finance Bill, 2008, he said: "I am unhappy about the current inflation rate. We have taken some measures to check price rise and will take more measures if needed. But everybody is impacted by the current global rise in prices. Hungary is facing 9 per cent inflation, Russia 7.4 per cent, Turkey 10.9 per cent, Venezuela 21.9 per cent and South Africa 10.6 per cent inflation."
He added that although the food situation had improved in the last few weeks and India would be able to build a buffer stock and strategic reserves, state governments should ensure there was no diversion of food grains.
"I have this standing committee report with me. It has a table showing the amount of PDS diversions in each state. I will not read it because it will embarrass many of the members as they represent their states here. But members should prevail upon their respective state governments to ensure there is no leakage and diversion of the PDS food grains," he told the House.
Chidambaram said there was no fertiliser shortage and nor would there be one in the future. "We will do nothing to hurt farmers. If that means importing more fertilisers at higher cost, if that means making Indian companies produce more fertilisers and if it means paying a higher fertiliser subsidy bill, we will do it."
He said an income-tax code was ready and the discussion paper was being examined.
The Rajya Sabha today passed the Finance Bill, 2008.
