Tags: New Delhi , Price-rise , Pranab Mukherjee

Kolkata: The Union government today said it is confident of controlling surging food prices soon even as the Planning Commission said the Centre has not acted resolutely to crack down on hoarders.

The government's exuberance on price front comes even though the Central Statistical Organisation said the farm output is expected to contract by 0.2 per cent this fiscal because of drought in some parts and floods in some others.

The CSO forecast is bad news for the government battling high prices as lower farm output could strain food supplies further.

Finance Minister Pranab Mukherjee today said food prices have surged due to supply side problems. "There is an imbalance between the demand and supply and the Centre has taken notice of it. Some people were taking advantage.

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