Prime Minister Manmohan Singh said rising food prices would make inflation control a more difficult task and it has the potential to derail economic reforms.
"We in India too are deeply concerned about rising global commodity and food prices a steep rise in food price will make inflation control more difficult and can thereby hurt the cause of macroeconomic stability. The constituency for economic reforms, so necessary for growth, would also diminish," the Prime Minister said at a global agro-industries forum on Thursday.
He said the pressures would mount for restrictive trade practices to deal with rising food prices.
However, Singh ruled out the return to an era of "blind controls".
"We cannot react to such a situation by depressing agriculture's terms of trade," he said.
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