PM reviews price rise situation with senior ministers

New Delhi: As the government grapples with high prices of essential commodities, prime minister Manmohan Singh today held a meeting with senior ministers to find ways to tame food inflation which has crossed 18%, reports PTI.

The meeting, which was attended by finance minister Pranab Mukherjee, home minister P Chidambaram, food and agriculture minister Sharad Pawar and Planning Commission deputy chairman Montek Singh Ahluwalia, remained inconclusive.

"Another round of discussion may be held tomorrow," a source said.

Food inflation rose to 18.32% for the week ended 25th December, due to rise in prices of food items like onion, milk and meat.

Retail price of onion continues to rule high at Rs55-Rs60 per kg in major parts of the country due to sluggish supply.

Food inflation has been fuelled by high prices of vegetables, fruits, meat, eggs and milk.

Onion has remained in headlines since prices could decline only marginally despite the government announcing three weeks ago that it was taking several measures to increase supply, including through import.

However, Mr Pawar said yesterday that there was not much the government could do in regard to vegetable prices.

"...vegetable prices are high and on that we do not have any control," he said, hoping that prices would come down "eventually".

Even arrivals of new onion crop could not make much impact on its prices, which remained at Rs55-Rs60 at the retail level.

Measures like income tax raids on traders, slashing import duty on onion and tight monetary policy by the Reserve Bank of India have not helped ease the situation.

To some extent, a global spike in commodity prices, are also being blamed for inflation which has become a main concern for the government.

On the import front, there seems to be no immediate hopes of Pakistan resuming onion exports to India with its local traders deciding to sell the contracted 3,000 tonnes of the vegetable into their local market.


Edelweiss Tokio Life Insurance gets initial approval from IRDA

Mumbai: Edelweiss Tokio Life Insurance Company, a joint venture between Edelweiss Capital and Tokio Marine, today said it has received the initial R1 approval from the Insurance Regulatory & Development Authority (IRDA), reports PTI.

R1 is the first step of regulatory clearances required for carrying on the business as a life insurance company in India.

"Life insurance premiums are likely to increase from the present level of Rs2 lakh crore to about Rs10 lakh crore in the next decade. We are excited by this opportunity and are confident of bringing a differentiated offering leveraging product development capabilities, understanding of Indian consumer needs and our partners' global experience," Edelweiss Tokio Life Insurance director Deepak Mittal said in a statement.

Tokio Marine is one of the world's largest insurance groups headquartered in Japan. With over 130 years of experience in the insurance sector it has expanded its reach across geographies in life and non-life insurance sectors.


December car sales up by 28.91%, bikes up 27.13%

New Delhi: Domestic passenger car sales jumped by 28.91% to 1,48,681 units in December 2010, compared to 1,15,337 units in the same month in 2009, reports PTI.

According to the figures released by the Society of Indian Automobile Manufacturers (SIAM), motorcycle sales in the country grew by 27.13% to 7,53,358 units last month, from 5,92,589 units in the same month previous year.

Total two-wheeler sales in December 2010 increased by 31.1% to 10,06,545 units from 7,67,789 units in the same period of previous year.

Total sales of commercial vehicles jumped by 27.3% to 61,880 units from 48,611 units in the year-ago period, SIAM said.

Total vehicle sales across categories registered a growth of 30.51% to 13,05,872 units in December 2010, as against 10,00,562 units in the same month of 2009, it added.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)