Govt Mulls Further Export Ban To Curb Inflation

Hinting at hard measures like further ban on exports to control rising prices, Finance Minister P Chidambaram has said inflation is also being stoked by cartel like behaviour in some sectors of Indian economy. Listing out a number of steps, including exports ban on non-basmati rice taken by the government, he told the Wall Street Journal in an interview that the government would consider further bans. Noting that soaring prices of rice and other basic food items are a matter of worry, Chindambaram said inflation is also being stoked by a mismatch of supply and demand and by cartel-like behaviour in some sectors of the economy.

The daily said that Indian government has cut some exports and taken actions to reduce food prices, such as banning the exports of non-basmati rice and hiking the export price of basmati variety. "As a short-term measure we will consider such bans, too," Chidambaram was quoted as saying. The minister told the daily that ministries of Steel and Commerce have proposed some export bans in steel, but further ban on food exports are less likely since "all export of food items is virtually banned" already.