New Delhi: Agriculture Minister Sharad Pawar on Wednesday indicated that the price of milk would increase in north India on account of a dip in milk production.
"There is a gap of 18 lakh tonnes between demand and the current milk supply," said Pawar in New Delhi while maintaining that the government was looking into the issue of price rise. But a few hours later Pawar said there was no shortfall in supply and procurement had improved in states.
Finance Minister Pranab Mukherjee on Wednesday said inflation was a matter of concern and the government was monitoring the price situation.
"We have already liberalised imports to meet the shortage of essential commodities. Certain items are under strict vigil and most of these items are duty free," said Mukherjee.
Elaborating on the measures taken to keep prices under control, Mukherjee said the Food Corp of India had started distributing wheat and rice to states through an open markets sale scheme.
"It is being done and is under constant review."
Earlier in the day, a Bharatiya Janata Party delegation, led by senior party leader L K Advani and president Nitin Gadkari, met Prime Minister Manmohan Singh at his 7, Race Course Road residence to "convey the concern of the people" on the rising prices of food articles.
The Prime Minister has called a meeting of chief ministers in New Delhi on January 27 to discuss the issue.
India's annual rate of inflation, based on wholesale prices index, rose sharply to 7.31 percent in December from 4.78 percent in the previous month mainly on account of increasing food prices, which rose 19.17 percent in the month.
Latest figures showed annual food inflation at 17.28 percent for the week ended January 2.
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