The Hindu Business Line : Commodity prices to ease in the short-term, say experts

NEW DELHI: The commodity prices, which have skyrocketed in recent times, is likely to soften in the next 2-3 months as a result of Government's various measures to tame inflation by improving supply situation, experts said.

The Government has been battling to contain the inflation, which has touched 7 per cent mark for the week ended March 22. Prices of edible oils, pulses and fruit and vegetables have increased significantly in last one year.

"Commodity prices will stabilise to this level (current rate) for sometime before moving upward. There is a serious supply side problem in most of the commodities," Mr Vijay Sardana, expert in agriculture policy and food business said.

However, Karvy Comtrade analyst Mr G Harish said the prices would ease in next 2-3 months with the recent measures taken by the Government and arrival of Rabi crops in the market.

"The Government had already taken measures such as import duty cut on edible oils, extension of ban on pulses export and limit on stock hoarding to check the rising prices," Mr Harish said, adding result of these measures is expected only after 1-2 month s.

Experts were also of the view that agriculture being a state subject, state governments should be concerned about the food security and take strict action against hoardings.

Mr Harish suggested that the Centre should force the state governments to strictly implement the stock hoarding limits.

Mr Sardana said there is no 'meaningful action' from the government to boost supply except a few announcement with no impact on ground.

"When the Centre knows agriculture is a state subject, why state governments are not taken to task for ensuring food security," he said. No state government has any plan for ensuring food security at state-level, he added. - PTI

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