- NEW DELHI: Opposition protests over rising food prices shut down India's Parliament on Tuesday, signaling mounting pressure on the government to rein in inflation as it prepares to outline its reform plans in this week's budget.
Opposition members rushed to the middle of Parliament's lower house and raised banners after the government turned down their demand for a debate and a vote on rising prices.
Asia's third-largest economy is recovering from the global downturn at a faster-than-expected rate, but food prices are growing at the fastest pace in 11 years and the government fears a backlash from millions of rural poor who are its main voters.
The opposition was beaten in elections last year but inflation has given it a weapon to attack the government, which is under pressure to find a solution without hurting growth in an economy recovering from a six-year-low pace of growth.
Inflation and a high fiscal deficit are major risks to India's ambitious plan to return economic growth to the 9 percent a year level seen between 2005/06 and 2007/08.
Food prices, which were up nearly 18 percent on year in the week to Feb. 6, are threatening to drive up headline inflation into double digits by March, analysts say.
A focus on price rise may also distract the government from pushing reforms such as the liberalization of the agricultural sector and freeing up fuel prices that may help cut the fiscal deficit.
The deficit is projected to rise to a 16-year high of 6.8 percent of GDP in 2009/10.
"The government has failed on the issue of price rise," said Arun Jaitley, leader of the main opposition Hindu-nationalist Bharatiya Janata Party (BJP).
The speaker of the powerful lower house adjourned proceedings until Wednesday after the uproar.
The railway budget is due to be tabled on Wednesday and the general budget on Friday.
Food prices have soared because last year's monsoon, which irrigates 60 percent of farms, were the worst in 37 years.
Disruption by opposition parties may also further delay debate on bills on land acquisition and entry of private players into the pension sector.



