This Article is From Aug 21, 2009

Drought conditions may lead to inflation: Pranab

Drought conditions may lead to inflation: Pranab
New Delhi:

Drought is the top-most priority for the government at present. Worried over the impact of monsoon failure, two of the senior-most ministers, Sharad Pawar and Pranab Mukherjee, are meeting agriculture ministers from different states.

The meeting is being held to chalk out plans for salvaging losses in Kharif production and to discus strategy for increasing crop coverage during the Rabi season.

According to government estimates, rice production would fall by 10 million tonnes and shortfalls are also expected in sugarcane and oilseeds.

Minister of Finance Pranab Mukherjee said at the meet that the drought conditions might lead to inflation.

"The drought conditions may lead to inflation. We need an action plan on deficient rainfall," said Mukherjee.

The Finance Minister said that the Prime Minister has been continuously monitoring the situation.

"The economic situation difficult due to drought. We will import grain to meet any shortfall if required," said Pranab.

However, he said that India has five megatons of strategic food reserves.

"We have developed a certain expertise to handle drought. We will not publicise government's plans to import food," he added.

He said that Uttar Pradesh and Bihar are very important in terms of crop acreage.

Speaking at the meeting, Pawar said the main challenge right now is to save the standing Kharif crop.

He further asked the state governments to ensure that farmers should sow their winter crops by November 15.

No escaping the drought

The government has declared that almost half of India is drought-hit, with 10 of the main rice producing states badly hit by deficit monsoon.

Drought has been declared in 246 out of the 626 districts in India.

In Assam all 27 districts are drought-hit while in Himachal Pradesh, all 12 districts have had little rain this monsoon season.

All 24 districts of Jharkhand have also been declared drought-hit, and same is the case with all nine districts of Manipur.

Meanwhile, 11 districts of Nagaland are reeling under severe drought while 58 of the 71 districts in Uttar Pradesh, 26 out of 38 districts in Bihar, 20 out of 29 districts in Karnataka and 37 districts in Madhya Pradesh are drought affected.

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