NEW DELHI: Apex industry body ASSOCHAM today said that though wholesale prices have been falling for more than 12 months, pulses that are within primary articles have shown upward price pressure continuously for the past six months, as such policymakers should check and address this issue through supply side responses.
“Although predictions of weather department are in favour of ongoing Rabi season but policymakers should contain the upward price pressure if it exists in the coming months,” said Sunil Kanoria, president of ASSOCHAM.
“Besides, continuous fall in manufactured products may hamper pricing power and profitability of manufacturers and producers which may further limit their potential to increase capital expenditure,” said Kanoria.
“Since the government has shown its commitment to support industry and considering that recent RBI policy stance to kick start investment and credit cycle can have positive impact on India’s economy in the coming months, WPI is likely to move upwards,” added the ASSOCHAM chief.