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The Narendra Modi government's honeymoon period may well be cut short if it fails to control inflation. The government has taken some steps. But are they enough?
     Print Edition: July 20, 2014
Are the steps taken by the govt to tackle inflation enough?

The Narendra Modi government's honeymoon period may well be cut short if it fails to control inflation. Prices of potatoes and onions have been rising alarmingly. The meteorological prediction of a poor monsoon this year makes the challenge even more formidable. The government has taken some steps. But are they enough?

SOME STEPS THE GOVERNMENT HAS TAKEN TO CONTROL INFLATION

> Imposed export restrictions on some farm commodities
> Ordered a crackdown on hoarders
> Raised minimum export price on onions to $300 per tonne from $150 per tonne to discourage exports
> Allowed direct sale of vegetables and fruit in the market by farmers instead of having to go through Agricultural Produce Market Committees
> Is closely monitoring prices of 22 commodities which affect food inflation

(Graphic by Anand Sinha; Research by Niti Kiran)




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