The government on Monday said providing relief to the aam aadmi from higher food prices will remain its top priority and expressed confidence the economy would grow by 7.5 per cent in 2009-10 and at an even higher pace of 8 per cent in the coming fiscal.
"My government continues to accord the highest importance to ensuring relief to the aam aadmi on food prices..." President Pratibha Patil said in her address to a joint sitting of both the houses of Parliament.
Attributing rising food prices to shortfall in domestic production and high prices of rice, cereals and edible oils in the international market, the President said, "My government is committed to bringing forth a legislation to ensure food security."
The country's food inflation touched a decade's high of about 20 per cent in December before moderating to around 18 per cent in February.
As regards the economy, the growth in the current fiscal was likely to be 7.5 per cent against 6.7 per cent a year ago she said on the opening day of the Budget session.
The President said while the government was able to avert any threat to the country's food security, "there has been an unhappy pressure on the prices of food grains and food products."
She said higher food prices, to some extent, were also a reflection of government schemes involving increased procurement prices to farmers.
The Congress in its election manifesto had promised to enact a law to provide 25 kg of rice or wheat per month at highly subsidised rate of Rs 3 per kg to families below the poverty line.
Referring to growth prospects, Patil said the economy during 2009-10 is expected to grow by 7.5 per cent, slightly more than what has been projected by the Central Statistical Organisation (CSO) earlier this month.
The CSO in its advance estimates projected a growth rate of 7.2 per cent for the current fiscal against 6.7 per cent in 2008-09. Patil attributed the economic recovery to stimulus provided by the government to cushion the impact of the global economic crisis and the failure of the Monsoon in large parts of the country.
In the next fiscal, Patil said the government would target over 8 per cent growth rate. "My government will aim at a growth rate above 8 per cent in 2010-11 and seek to achieve 9 per cent growth in 2011-12," she added.
Higher prices were inevitable given the shortfall in domestic production and prevailing high prices of rice, cereals and edible oils globally," the President said.
