Govt, not traders, to blame for food inflation

Retail food inflation has persisted at 10 per cent per annum while cereal inflation is around 15-17 per cent. Wheat constitutes about 45 per cent of the grain consumed as flour in the country. Its MSP is Rs 1350/quintal while it costs up to Rs 1800/quintal — 33 per cent higher -- in wholesale markets in most of non-wheat producing areas of southern India. And, 24 million tonnes of excess wheat — after accounting for buffer norms — is languishing with Central agencies as of October 1, 2013.

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