'Need contingency plan to tackle crude price volatility'

As crude oil prices have started moving upwards in the global market, the government needs to put in place a contingency plan to tackle volatility in rates, according to industry body Assocham.

"In dollar terms, the price of the Indian crude basket has gone up by over 9 percent between May 1, 2015 and May 7, from USD 60.30 to USD 65.81 per barrel, while in rupee terms, prices have shot up by 11 percent from Rs 3,789.86 to Rs 4,203.94 per barrel," the industry body said in a statement today.

"The worry is being aggravated by the pressure on rupee as crude is looking up in the international market.

While it is early days to press the panic button, caution and a contingent plan should be in order if the situation gets worsened by Monsoon deficiency, going forward," Assocham said.

The industry body further said the volatility being witnessed in crude oil prices was not a good news for India, which is on the cusp of recovery, along with the macro factors like poor outlook of Monsoon.