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Last Updated: Thursday, 22 June 2006, 12:46 GMT 13:46 UK
Imports to check Indian inflation
Vegetable market in Bangalore
The prices of food and vegetables has been steadily rising
The Indian cabinet has decided to import wheat, sugar and pulses in an attempt to check rising inflation.

The prices of essential items including food and vegetables have soared in several parts of the country in the past few weeks.

The spiralling prices is partly due to a recent hike in fuel prices by the federal government in keeping with rising global oil prices.

But there has been growing concern over the sharp price rise.

Indian Finance Minister P Chidambaram told reporters that details about wheat and sugar imports will be decided later on Thursday or on Friday.

Mr Chidambaram expressed confidence that rising inflation will be "dampened and a measure of restraint will come in the market" once supplies are augmented by imports.

The Indian government has already decided to import wheat and the first consignment has arrived from Australia.

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