Deeply concerned over inflation: Pratibha Patil

President Pratibha Patil on Monday said his government is deeply concerned over the adverse impact of inflation on the common people and a long term solution lies in increasing productivity and production.

Addressing the Parliament, Patil said: ?My government is deeply concerned over the adverse impact of inflation on the aam aadmi and the threat it poses to the growth momentum. It has taken a number of pro-active measures to counteract the ill-effects of inflation.?

?The import regime has been liberalized to ease supply constraints of critical items. Exports of commodities like edible oils and pulses have been banned. Pulses are being supplied at subsidized prices through the public distribution system. Public sector units have been directed to open more retail outlets for selling vegetables to individual consumers.?

She said cereal prices, that were of a grave concern last year, have been checked.

?The issue prices for rice and wheat for the public distribution system have not been changed for the last eight years. These steps have shown results. Cereal prices, a dominant cause of concern last year, have been in check. In fact, inflation was declining until November last when unseasonal rains in some states, led to a spurt in vegetable prices.

?These prices have come down again following the arrival of the fresh crop,? said Patil.

The President said the solution to inflation lies in increasing productivity and production.

?The long term solution lies in increasing productivity and production. My government has provided huge incentives to our farmers to produce more. The minimum support price for paddy has been raised from Rs 550 to Rs 1000 per quintal and that for wheat from Rs 630 to Rs 1100 per quintal over a six year period.?

?The support price for sugarcane has been increased by more than 50% over the past two years. We have continued to give incentives through the supply of fertilizers at subsidized prices. The new nutrient based system is likely to enhance the rational use of fertilisers.?

Patil said the Rashtriya Krishi Vikas Yojana, has pumped in investment of around Rs 35,000 crore in agriculture.

?The National Food Security Mission has taken the green revolution to Eastern India. Credit flows to agriculture have reached record levels. Nearly one crore hectares have been brought under assured irrigation since 2005-06. Water conservation measures have been taken up on a war footing under the Mahatma Gandhi National Rural Employment Guarantee Act,? said Patil.