By SUNIL Sonkar

NEW DELHI, India: Montek Singh Ahluwalia, Planning Commission Deputy Chairman, said Tuesday food prices will start coming down from the next month. Now the food prices are ruling at 10-year high.

The situation suggests dysfunction in the distribution as the retail prices have too high than the wholesale prices said Ahluwalia. He also added that the import cannot be done without any subsidy as the international prices are also higher.

Ahluwalia said, “It’s a complex situation and cannot be corrected with monetary polices … prices built up is on speculation post drought. Stocks of cereals are adequate and prices can be moderated and it will be from January.”

He added that the high price food was a great matter of concern to the government. “There were some increased expectations but for some products like vegetables the increase is excessive.”

The food inflation was close to 20% during December first week. This price rise was driven mainly by the price rise of potato, other vegetables and also of pulses.

C Rangarajan, the Chairman of Prime Minister Economic Advisory Council, said that to tam the high rice of food prices, the RBI could only reduce the money supply and at the same time raise the interest rates.