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This is an archive article published on December 19, 2007

India can’t be immune to global events: PM

Sounding a note of caution on US sub-prime crisis, the PM said that India can't be immune to the clouds on global financial markets.

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Prime Minister Manmohan Singh on Wednesday cautioned India cannot remain immune to international events like sub-prime crisis and rising commodity prices and said the country needs to create buffer stocks of pulses and edible oils to improve its food security.

“We probably need to enhance our buffer stocks of foodgrains and also consider buffer stocks for pulses and edible oils,” he said while inaugurating the National Development Council (NDC) to approve the 11th Five Year Plan.

Pointing out that the food security was going to come under stress, the Prime Minister said, “We need to

revisit our foodgrain procurement strategies in the short term, also ensure that subsidised foodgrains are targeted at only the needy and the poor and that leakage and misdirected subsidies are stopped.”

Sounding a note of caution on the US sub-prime crisis, Singh said, “There are some clouds on global financial markets following the sub-prime lending crisis. We cannot be fully immune to international developments.”

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