President says food prices are still a serious concern

President Pranab Mukherjee has expressed concern over high food prices, while expressing optimism on high growth.

“Notwithstanding occasional spurts, inflation has started moderating. However, food prices still remain a matter of serious concern,” the President said in his address to the nation on the eve of Independence Day. His remark came on a day when the wholesale price index for July fell to 5.19 per cent, against 5.43 per cent in June. However, food inflation rose to 8.43 per cent in July from 8.14 per cent in June.

After two consecutive years of sub 5 per cent growth, Mukherjee felt growth was ready to rebound. “Manufacturing sector is on the rebound. The stage is now set for our economy to move on a high growth trajectory of 7 to 8 per cent,” he said.

The President said the economy grew at an average 7.6 per cent during the last decade. Though the momentum slowed down later, he said he now sensed a “renewed vigour and optimism in the air. Signs of revival are visible. Our external sector has strengthened. Fiscal consolidation measures are beginning to show results.”

He noted that record foodgrain production last year helped agriculture to grow at a healthy 4.7 per cent. Employment, too, grew by about 4 per cent a year in the last decade.

The President said intolerance and violence were a betrayal of the letter and spirit of democracy.

“Those who believe in the poison drip of inflammatory provocation do not understand India’s values or even its present political impulses. Indians know that progress, economic or social, is difficult without peace,” he said.

His remarks are significant in the context of rising incidents of communal violence in the country.