PM asks S.A.A.R.C. to seek global response to oil price hike

Colombo, Aug 2 (PTI) India Saturday asked S.A.A.R.C., a
grouping of south Asian countries including itself, to work
for an effective global response to the record rally in oil
and food prices, which can jeopardise development gains in the
region.

"S.A.A.R.C. must make its voice heard in the councils of
the world to ensure that there is an effective global response
that protects the interests of oil consuming countries," Prime
Minister Manmohan Singh said at the 15th S.A.A.R.C. Summit
here.

The Prime Minister said, to become a "dynamic and
responsive" body, S.A.A.R.C. must identify and address new
challenges. "The unprecedented increase in oil and food prices
risks jeopardising our developmental gains," he said.

Singh said the Indian economy has grown by an average of
8.8 percent in the past four years. He said Asia has become
the engine of growth of the world economy and "South Asia a
part of this resurgence".

India, which imports over 70 percent of its crude oil
requirements, has been seeking a strong global response to the
runaway rise in fuel prices. It suggested to the oil producing
countries a price band, but found no takers for the idea.

Rising crude prices have pushed India's oil import bill
by over 50 percent to 25.52 billion dollars for the April-
June quarter of 2008-09 from 16.99 billion dollars in the
corresponding period last year.

The Prime Minister said establishment of the S.A.A.R.C.
Food Bank in 2007 was a "forward looking" decision in the
context of the global food crisis.

"This decision stands out as an example of our foresight
and our ability to help ourselves," he said, calling for
forward movement on early ratification of the Inter-
governmental Agreement by the member states.

Emphasising the importance of physical connectivity,
Singh said India looked forward to the finalisation of the
draft agreements on motor vehicles and railways.

On its part, India has upgraded its railway connection to
broad gauge at the Raxaul-Birgunj and Jogbani-Biratnagar
borders, while the Dhaka-Kolkata rail service has begun. Work
is also underway to upgrade infrastructure along borders with
other neighbours.