"We probably need to enhance our buffer stocks of food grains and also consider buffer stocks for pulses and edible oils," he said while inaugurating the National Development Council (NDC) to approve the 11th Five Year Plan.

Pointing out that the food security was going to come under stress, the Prime Minister said, "We need to revisit our food grain procurement strategies in the short term...also ensure that subsidised food grains are targeted at only the needy and the poor and that leakage and misdirected subsidies are stopped."

Sounding a note of caution on the US sub-prime crisis, Singh said, "There are some clouds on global financial markets following the sub-prime lending crisis...We cannot be fully immune to international developments." 

As the country launches the 11th Plan the growth prospects are encouraging, the Prime Minister said, adding, "We will not only be able to maintain this momentum of high growth into the near future but may be able to raise to 10 per cent. This is what the 11th Plan attempts to do over the next five years."

Referring to global trends of high food and commodity prices, including oil, Singh said domestic consumption pattern will put "increasing pressure on both the availability and prices of basic food items."

In order to manage these pressures, he said, "We need to ensure that the agriculture sector not only performs as per our expectations but also that our food planning adjusts to the emerging market realities."

The country, he said, needs to review food procurement strategies as India is going to be importer of food items for many years. It needs to manage these imports in a structured manner and build buffer stocks of pulses and edible oils, in addition to augmenting existing stocks of food grains.

As regards the petroleum sector, the Prime Minister said, "With international oil prices shooting up each day, it is both in the interest of energy security and environmental security that we make our economy less energy intensive."

Referring to the US sub-prime mortgage crisis and the likely slowdown of the global economy, Singh said, "this may impact both our exports as well as capital flows". Singh said with increased globalisation, the country's economy accounts for almost 40 per cent of the GDP and, hence, India cannot remain unaffected by global developments.

"This is not to say that one must be pessimistic and less ambitious in our growth targets. It only implies that we need to redouble our efforts to maintain the domestic drivers of growth and ensure that policy facilitates even faster growth", the Prime Minister said.