Edible oil, pulses main contributors to inflation; price rise to slow once crops come: Government

FM Sitharaman reiterated that the Centre will have to coordinate with states on ways to reduce the taxes and duties.

Published: 25th August 2021 08:43 PM  |   Last Updated: 25th August 2021 08:43 PM   |  A+A-

Rs 2000

For representational purposes (File Photo | AFP)


MUMBAI: Major contributors to inflation are edible oil and pulses, and to boost their availability in the market, the supply side has been addressed through duty cuts, a senior finance ministry official said on Wednesday.

On the issue of petrol prices, Finance Minister Nirmala Sitharaman on Wednesday reiterated that the Centre will have to coordinate with states on ways to reduce the taxes and duties.

Revenue Secretary Tarun Bajaj said inflation will come down once the crop harvests come into the market, and expected it to be within 4-6 per cent.

"The RBI has come out with a guidance on inflation and said that the inflation, which is a little on the up, will cool down in some time, and we also feel that once the crops come out, inflation should come down," he told reporters.

He added that the strategy to reduce price rise is that the government has reduced duties on a number of products, which are edible oils and pulses.

"The major inflation that is happening is in these components. We have reduced that duty, we have ensured extra pulses and edible oils are coming from outside the country, so that the supply side is improved."

Inflation cooled down to 5.59 per cent in July, and the Reserve Bank of India (RBI) expects it to remain at 5.7 per cent in 2021-22.

Sitharaman said the food inflation has come down.

Due to supply chain disruptions during the coronavirus time, it had breached the six per cent level, she added.

The government is monitoring the inflation and also coordinating with states where required, she said.

Meanwhile, when asked about concerns about the reasoning on oil bonds, Sitharaman stood by her remarks made earlier, and said that it was "trickery" of the UPA government on oil bonds for which the current government is paying.

On reduction of duties and taxes on oil products, Sitharaman said the Centre will have to sit with states to find a solution.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp