In an interaction with reporters at the Indian embassy on Wednesday, Pawar said the petroleum price hike decision was expected, and there was no choice but to take it.
"When the prices of crude oil products are going up and up like anything and if you are not going to take these types of corrective measures, probably today petroleum companies and tomorrow the country's economy would have come to a halt," he said.
Pawar said it is the government's responsibility to explain to the people the background for the price hike and expressed confidence that ultimately the people would accept the decision.
"Of course, it will affect Indian agriculture because the use of diesel is a very important factor in agriculture," he acknowledged, "It will reflect on the consumer. It will also reflect on the farming community. But then everybody has to sacrifice."
On the controversial issue of wheat imports, for which he had been heckled in Parliament despite his assurance about food security in India, Pawar argued that it was a "temporary phenomenon" that was put in place to replenish the country's buffer stock.
"Production is the same. In fact, a little better than last year," he said, "but if something goes wrong to blunt a monsoon or rainy season or a state faces drought, there might be a crisis. So there was no alternative but to import about 3.5 million tonnes (of wheat)."
On Washington being peeved that Australia was given preference over the US in the import of wheat, Pawar acknowledged it had been a topic of discussion with US Agriculture Secretary Mike Johanns and that two weeks ago he had had a telephonic conversation with Johanns on this issue.
"Today, I explained to him our position," Pawar said, asserting that India was simply following international guidelines and not favouring any one country over another.
"US businessmen and traders who would like to participate," he added, "they have got every right to participate. There are no restrictions, only price-wise these people have to be competitive."
The minister said with regard to the export of Indian mangoes to the US, which was announced by President George W Bush during his visit to New Delhi in March, he had brought up the issue with Johanns, "and I found the US side is quite serious about that.
"They would like to solve issues as early as possible," Pawar added, "and, we are expecting that the next mango season probably we will be able to export our mangoes to American markets."