Kolkata: Attributing rising prices to increase in procurement costs, Finance Minister Pranab Mukherjee on Sunday said the Centre was trying to control food inflation.
"Foodgrain prices have increased due to escalating procurement prices," Pranab told. Mukherjee, however, said the production of pulses has increased.
Pranab pointed out that high procurement prices of foodgrain was also contributing to inflation.
The Minimum Support Price (MSP) paid to farmers for wheat rose from Rs 650 in 2006-07 to Rs 1,170 in 2010-11, while that for paddy increased from Rs 610 to Rs 1,080 during the period.
"The Centre collects one third of the total foodgrain production and the procurement prices act as a major determining factor of the market prices," Mukherjee said.
"Despite this, the government is trying to contain the overall food inflation," he said.
Referring to rise in price of rice and wheat, he said the government was aware of the situation and taking all steps to arrest it.
Inflation inched up to 9.44 per cent in June due to sharp increase in prices of diesel and LPG and experts have cautioned that the general inflation may even touch the double digit mark.
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