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NT Bureau
Chennai, Jan 29:

        There is an imperative need to address the issues of agricultural sector which is now in dire straits. As a result the prices of commodities has zoomed to an all-time high, observed R Seshasayee, president, Confedertion of Indian Industry (CII).

        Reacting to the recent government notification, he said that the customs duty reductions on a variety of items including, capital goods, certain inorganic chemicals, metals, ferro-alloys and stainless steel, refractories, Portland cement, would largely be absorbed by a competitive Indian industry and added that some of these reductions are as per CII's own expectations from the Budget 2007-08 and therefore, are in line with the general movement towards a lower duty regime.

        In this context, he made a particular reference to non-ferrous metals, calcined alumina, pipes and tubes of copper, aluminium and zinc.

        The CII president stressed on the need for the government to really tackle inflation, which was hurting the common man. For this, bold decisions are required in the form of interventions to contain agricultural commodity prices.

        Referring to the latest figures of inflation, he said that it is very clear that it is being fuelled by steep rise in prices of certain food items. At 9.6 per cent increase in prices of food items, the consumer-public feel the pinch of it. Hence, it is quite uncertain to state the impact of customs duty cuts for certain industry items would have in easing the plight of the common man.

        The CII president added that in the medium to the long term, the whole issue of supply side shortages would have to be addressed in a comprehensive manner, since reduction of duties can only serve as short-term responses to a price situation. It is well known now that the entire agricultural sector and particularly the food grains sector is suffering from a stagnation, even while growth in other sectors are driving per capita income and demand to grow at a rapid pace. This is a very serious issue and needs a comprehensive response from the government. Only then would we have addressed the need of the hour, he added.