Increasing Import of Food Items Fails to Defuse Inflation
Date : January 10, 2011
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Indian import of food items was record high during first half of 2010 financial year (April to October 2010). However, even such large increase in import failed to combat food inflation, which stood at a record 18.3 per cent in December 2010.
Imports of edible oil increased 11.8 per cent to Rs 15,882 crore. Within this segment, crude oil imports went up 17.2 per cent, while that of refined oil fell 16 per cent. Increase in edible oil import is mainly due to substantial increase in import of soyabean crude oil.
Imports of milk and milk products saw four-fold jump to Rs 536.12 crore. Foodgrains surged to Rs 211.25 crore from Rs 12.47 crore. Alcoholic beverages increased 55.4 per cent to Rs 287.4 crore.
While total import of 415 sensitive products increased to Rs 40,499 crore (April-October 2010) from Rs 35,487 crore during the previous year, the gross import of all commodities was Rs 8,89,827 crore against Rs 7,43,469 crore.
Imports of pulses, fruits and vegetables (including nuts), cotton and silk, spices and tea and coffee declined during the period; that of all other items, including products of SSI, marble and granite, increased.
Imports of sensitive items from Indonesia, China, Argentina, Korea, Malaysia, the US, Germany, Ukraine, Thailand, Australia, Cote D\' Ivoire, the UK, Czech Republic, Vietnam and New Zealand have gone up while those from Myanmar, Canada, Brazil and Japan have gone down.
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