Inflation remained unchanged at the previous week's level of 4.27 per cent for the week ended July 7, despite a fall in prices of fruit and vegetables, poultry chicken, moong and masur, and some manufactured items.
Inflation further eased to 4.80 per cent for the week ended June 2 as compared to 4.85 per cent in the previous week, mainly due to decline in food prices and some fuel and manufactured items.
Central government's plan to import pulses to rein in inflation is continuing with renewed vigour as state-run agencies have contracted imports of 437,000 tonnes of pulses till this week.
Although inflation had touched 6.12 per cent during the week ending January 6 this fiscal, but it came down to 5.95 per cent in the following week.
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Higher prices of pulses, fruits vegetables and some manufactured products pushed the wholesale price-based inflation up by 0.36 per cent to 4.32 per cent for the week ended May 13, against 3.96 per cent in the previous week.
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The government has also extended till August 31 the repayment date of short-term crop loan of up to Rs 3 lakh for agriculture and allied activities. The decision, taken by the Cabinet headed by Prime Minister Narendra Modi, will give respite to farmers and also help them take a call on which kharif (summer) crop to grow as sowing picks up with the arrival of southwest monsoon.
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Acreage of these crops is likely to fall as prices drop below MSP in mandis; area under cotton, maize may increase on better realisation
Markets regulator Sebi joined hands by banning any fresh futures market position in chana, the only commodity among pulses where such trading was allowed
Government acts against hoarders, over 5,800 tonnes of pulses seized
The provision of consultation with the states has further created confusion on MSP
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Swarms of immature pink locusts and adult yellow locusts are currrently active. Not only are fresh locusts swarms expected to arrive in the coming weeks, but even those already present in India have mated and are breeding new offspring.
'Obviously, MSP hike raises chances of a reduction in exports. Even without an MSP hike, India's exports of a number of agri-commodities, like sugar, were unviable in the overseas markets.'
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The Centre has taken several measures such as creating a buffer stock of 40,000 tonnes and sale of imported pulses at cheaper rates to give relief to the common man.
A maximum quantity of 23,340 tonnes was seized in Maharashtra.
The BJP veteran was detained on Monday evening while protesting against the state government's "apathy" towards the farmers of Vidarbha. He was taken to the district police headquarters and later released.
The RBI said recently that the upsurge in inflation in April was led by food and commodity prices.
The decision, taken by the Cabinet Committee on Economic Affairs headed by Prime Minister Narendra Modi, comes less than a year before next general election.
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The Centre had asked the state governments to meet the millers.
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