Govt plans more steps to check inflation

NEW DELHI (Reuters) - India will take more steps to check inflation and states have been asked to prevent hoarding of essential food items, policymakers said on Tuesday, even as key ministries differed on steps to curb rising steel prices.

India's headline inflation raced to 7.41 percent in late March, its highest level since November 2004, due to a rise in prices of metals, food and fuel.

The government has over the past few weeks cut import duties on edible oils, banned export of cement and non-basmati rice, and withdrawn export incentives on cement and steel to increase local supplies and rein in inflation.

Finance Minister Palaniappan Chidambaram said on Tuesday more steps are in the offing while Trade Minister Kamal Nath said measures already taken by the government will help reduce inflation in coming weeks.

"There are no differences in the government on controlling inflation. The government is doing everything to control inflation," Nath told reporters after a business conference.

On Saturday, Nath said the cabinet committee on prices was likely to meet this week to consider a ban on export of primary steel.

"I do not know when the cabinet committee on prices will meet but when it meets, I expect some measures," Chidambaram said.

Nath said states have to shoulder a "larger part of the responsibility" in improving supply side management and prevent hoarding of food items.

Officials in Maharashtra and Delhi raided godowns of traders in the spot market over the weekend while Andhra Pradesh and Gujarat imposed stock limits to prevent hoarding.