Policy interventions, including access to open trade, may be envisaged to arrest the slump in prices.” Abundant supply, coupled with the renege on procurement by designated agencies, resulted in the market price of pulses falling sharply below minimum support prices fixed by the government.
Nonetheless, the MPC did express misgivings about the durability of the unusually low momentum of inflation, the likelihood of petrol and diesel prices rising, and the possibility that the stickiness of inflation excluding food and fuel would re-assert itself soon.