Amid inflation scaling five month high level of 6.01 per cent, the government today said it is working out a mechanism to deal with the anticipated shortage of food grains to deal with inflation in wake of the sub-normal monsoon.
"If inflation is going to continue because of supply side constraints or because of any other factor, the government is working to anticipate any such shortcoming, to anticipate the loss in production and prepare for it. That indirectly will have an impact on inflation," Commerce Minister Nirmala Sitharaman said.
The Indian Meteorological department (IMD) has predicted deficient monsoon, she said, adding the government is working and preparing itself to deal with the situation.
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Rising prices of essential food items like vegetables, fruits and cereals, pushed up inflation to five-month high of 6.01 per cent in May.
Food inflation stood at 9.50 per cent, while the manufactured inflation was 3.55 per cent in the last month.
Experts said the likelihood of sub-normal monsoon and political tension in Iraq may further push up prices of foodgrains and crude oil.
The IMD has cut its June-September monsoon forecast to 93 per cent.