“Hoarders take advantage of the forecast of below normal monsoon.  During July-December every year, prices of some food items increase because of the hoarding,” Jaitley said.

“State governments should take stern action against hoarders to rein in prices and the Centre will give its full support,” he added.
Food Minister Ram Vilas Paswan, Agriculture Minister Radha Mohan Singh and Secretaries of the concerned department were also present at the meeting.

According to sources, Paswan said that tackling the problem of food inflation is important for the government because it can easily distort the various concrete initiatives already taken for revival of the economy and improvement in distributive justice.

Despite government measures, the prices of some food items especially onion and potato have been rising. Jaitley, however, said there is no panic situation as the onion prices are lower than last year.

During May, the overall inflation rose to a five-month high to 6.01 percent, while food inflation rose to 9.50 percent due to rising prices of essential food items like vegetables, fruits and cereals.


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