'Good monsoon will reduce inflation'

Even as Prime Minister Dr Manmohan Singh is eyeing a decline in inflation to 5-6 per cent by the year end, Planning Commission member Dr Narendra Jadhav said only a good monsoon and augmentation of agriculture production could help achieve the target.

"Considering the current agricultural situation where the rabi crop was really good, it is likely that the PM's vision of bringing down inflation could be achieved.

"But the target would be a reality only if there are good monsoons," Jadhav said on the sidelines of an event organised in Mumbai on Tuesday.

He said inflation, especially food inflation, was a serious problem faced by the government.

"Inflation is a regressive form of taxation which hits the poor the most. Thus, inflation has to be contained as early as possible," he said.

Jadhav emphasised that a good monsoon would play a vital role in bringing down inflation.

"The meteorological department has forecast 95 per cent rainfall this year. If we get good rains accompanied by augmentation of agricultural production, then Dr Singh's target could be achieved easily," he said.

Jadhav said there was a need for an integrated market for agriculture in India.

About the power scenario in the country, Jadhav said, "Power is also one of the major causes of concern. But the acute shortage of power is likely to reduce especially when the government is taking measures to become energy surplus by 2012.