Healso explained the impact of this high inflation on the industriesand said, ?Containing the spiral of rising price pressures is ofutmost importance to revive industrial production especially aspersistent inflation has caused the interest rate to follow a tighttrajectory and has added to the cost of capital for industry. As aresult, growth is impacted. Hence, tackling food inflation shouldassume centre stage in order to bring growth back to the economy.?
Banerjeesuggested the government to address the problem of rising foodinflation by considering a multi-pronged approach which includesimplementation of model APMC Act, developing advanced supply chains,rationalizing input subsidies, effecting moderation in MSP,right-sizing buffer stock, effective management of non-cereal fooditems especially protein based, improving agri productivity and focuson crop diversification, augmenting investment in agri-infrastructureand encourage FDI in retail.
SidharthBirla, President, FICCI also responded on this issue saying,?Inflation remains a key impeding factor to the overall growthprospects of the economy. With food and fuel prices being the keydriving factors, upside risks to inflation continues. The sub parmonsoon outlook for this year could put pressure on food prices goingahead.?
Birlaalso appreciated the Prime Minister's indication towards, takinginflation as a serious concern and giving it the top priority.