NEW DELHI: Sharing MPs' concern over price rise, Prime Minister Manmohan Singh on Thursday appeared confident that the measures taken by the Government would moderate inflationary pressures over the next few months. "There are indications that the rate of inflation has declined by nearly one percentage point in the last two weeks," he told Parliament.

Replying to the debate on the motion of thanks to the President's address, Dr. Singh said the Government was trying to "curb inflationary pressures."

While supply-side shortages could be eased through imports, the Government's effort had been to bring in those imports without affecting the profitability of domestic agriculture.

Similar replies

In almost similar replies in the two Houses before the motion of thanks was adopted, Dr. Singh dwelt on the need to revitalise the agricultural economy, the controversy surrounding the Special Economic Zones (SEZs), internal security and foreign policy.

He said the monetary measures taken by the Reserve Bank to moderate the growth of money supply, and steps by the Finance Minister to reduce customs duty on essential commodities and arrangements to augment domestic supplies through imports would have the desired effect.

Region-wise plans

Calling for a more effective strategy to increase production of foodgrains, vegetable oils and pulses, Dr. Singh said it would be a priority concern of his Government during the 11th Five-Year Plan. Region-wise plans would be prepared by the Agriculture Ministry and the Planning Commission to revitalise the agricultural economy and these would be discussed at a National Development Council meeting.

Water dispute

In an obvious reference to the Cauvery dispute, the Prime Minister called upon all the political parties to treat water as a national resource and not as an issue that should divide the people. "The management of our water resources and putting in place viable and effective arrangements for the resolution of inter-State disputes are critical for sustained development in the years to come."

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