India's federal government may reallocate about $12 billion from the budget of various ministries to curb food and fuel inflation, a media report has said.
Indian Prime Minister Narendra Modi may announce the decision in the following weeks regarding “reducing petrol costs and ease import levies on essential commodities such as cooking oil and wheat,” a Western media outlet reported, citing an unofficial source.
The inflation in vegetables and staple grain prices is taking place after several regions of the country witnessed uneven weather patterns last year, and then in March and April this year.
The Indian government banned the export of wheat in 2022, and non-basmati rice varieties in July this year.
India has entered its festive season, which will last until mid-November (the festival of lights - Diwali), which will then be followed by state elections. The country is set to hold parliamentary elections in April-May 2024.