Prime Minister Manmohan Singh Expresses Hope for Price Moderation Amid Fuel Price Hike

Prime Minister Manmohan Singh expressed hope that prices of essential commodities such as wheat, sugar, oilseeds, and pulses would see some moderation with the new rabi crop coming into the market. He made these comments during a press conference on board Air India One on his return from a three-day official visit to Saudi Arabia. The Prime Minister emphasized the need to balance populist policies with economic growth, stating that long-term persistence with such policies could lead to erosion of the investment climate and the capacity to create new jobs.

Key Takeaways:

• Prime Minister Manmohan Singh expressed hope for price moderation of essential commodities such as wheat, sugar, oilseeds, and pulses with the new rabi crop coming into the market.
• The direct effect of the increase in fuel prices on wholesale prices is estimated to be no more than 0.4 percent.
• Manmohan Singh emphasized the need to balance populist policies with economic growth, citing concerns about the erosion of the investment climate and the capacity to create new jobs.
• The Prime Minister rejected the idea of rolling back the fuel price hike, stating that this would compromise the country's ability to absorb the price increase without triggering inflationary spiral.
• Manmohan Singh acknowledged that price increases hurt certain sections of the population, but emphasized the need for a long-term view when making economic decisions.

Statistics:

• Direct effect of increase in fuel prices on wholesale prices: 0.4 percent
• Duration of Prime Minister's official visit to Saudi Arabia: 3 days

Sources:

• Indo-Asian News Service (IANS)
• Hindustan Times (HT Syndication)