While addressing the Development Committee meeting of the World Bank in Tokyo, Finance Minister P. Chidambaram wants urgent steps at the international level needs to initiate to curtail the diversion of foodgrains for alternative uses.

Finance minister’s concern came over rising global food and commodity prices. After 18 months food inflation is still hovering in double digit marks.

According to him, “Rising food and commodity prices have adversely affected growth and social stability, as well as health, nutrition and education in poor countries. Countries need to quickly address the constraints on “farm to market”

While commenting on global crisis he added, “Volatility in the global economy will stay for some time and slower growth in major emerging economies have dimmed prospects of a quick turnaround”.

“At this juncture, we need a well-coordinated, collaborative and bold global effort to address these challenges,” he said.

Chidambaram said that inflation in India is expected to remain sticky in the near-term. While inflation rate has moderated, it still remains beyond the comfort zone of the RBI.

However, with uncertain global macro-economic environment and slowing domestic growth, the financing of CAD will continue to remain a challenge, he added.