Financial Times FT.com

India goes into inflation-fighting mode

By Jo Johnson in New Delhi

Published: February 14 2007 19:25 | Last updated: February 14 2007 19:25

New Delhi on Wednesday swung into inflation-fighting mode with a government ban on wheat exports throughout 2007, less than 24 hours after India’s central bank tightened monetary policy for the second time in two weeks.

“The purpose of the ban is to keep prices under check as the procurement season is just starting. It will be effective until at least December 31,” said Shipra Biswas, for the Commerce Ministry.

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