at his annual post-Budget interaction with various industry
chambers, finance minister P Chidambaram today said at
his meeting with Assocham that rising inflation could
be tackled in the long run only through increased supply
of farm products, which was precisely the focus of Budget
said that while fiscal steps would have some immediate
impact, the monetary side would take some time to migrate
in to the system, making supply side management a more
durable answer to inflation. "More wheat, more rice,
more sugar, more pulses, more oil seeds is durable side,"
he told Assocham's members.
the Budget's focus on the farm sector, Chidambaram said
that just as augmenting the supply of inputs was the answer
to industry's durable growth, raising the supply of these
would be a durable answer for agriculture. "The laws
of economics cannot be different for agriculture,"
was of the view that 2007-08 would also witness high growth
and that the supply of inputs to industry would increase
with rising growth.