Food prices to fall in January, says Montek

“In January you will see a decline in food prices,” Ahluwalia observed while speaking in a video conference from Delhi for a CII meeting here.

Expressing “grave concern” over the high prices of food, he said, “the increase in retail prices was more than the wholesale  and it was indicative of some dysfunctionality in the distribution system.”

According to him, food prices had seen a speculative rise because of the drought situation. “This was despite the fact that the drought did not have the effect it was supposed to have. We have adequate stocks,” Ahluwalia added.