We will control inflation - PC

Liberalisation of imports, banning exports and a cut in excise and customs duties are some of the many steps initiated by the UPA government to control inflation in the country, Finance Minister P Chidambaram said here Sunday.

He said rising inflation, linked to the global price of crude oil, was a cause for concern. "An unprecedented situation is now being witnessed on the price front," he said.

The government is fully resolved to control price rise and suggestions were welcome to inject more measures to keep prices on hold, he said, addressing Congress party workers at the PCC office here on his one-day visit to Puducherry.

He said the economy had grown by nine per cent, which had been "out of bounds" for the erstwhile BJP-led NDA government, and added that several anti-poverty measures initiated by the government had come as a boon to the rural poor.

He said that introduction of the National Rural Employees Guarantee Act was a "sacrosanct step" which could never be disturbed for next two decades or so.

Chidambaram said that the government`s target to disburse Rs 2.80 lakh crore under farm loans this year would be exceeded and the coverage would be around Rs three lakh crore.

He said waiver of farm loans to benefit 71,680 farmers would be done by this month end as announced earlier. As far as Puducherry was concerned, around 30,800 farmers would benefit from the loan waiver scheme.