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Cabinet committee moots open market wheat as part of price-check measures

The Cabinet committee on prices has announced several steps to check prices, including putting on open general licence import of sunflower and soyabean seeds in split form.

It also asked the department of sugar and edible oils to immediately consider import of additional quantity of edible oils.

Another decision of far-reaching importance taken by the Cabinet committee was to ask the department of food and civil supplies to consider at an appropriate time open market sales of wheat.

Putting on OGL sunflower seeds is subject to quarantine restrictions.

An official spokesman said the government has been greatly concerned at the trend of rising prices. Prime Minister Atal Bihari Vajpayee in his address on Independence Day (August 15) had said that the government would soon come up with several measures to check the price rise. The Cabinet committee which held a meeting to review the price situation took into account the increased prices of edible oils.

The department of edible oils has been asked to immediately consider import of additional quantity of edible oils to keep prices under check. With regard to wheat this year, the procurement has been of the order of 12 million tonnes and the government has contracted import to the tune of 1.5 million tonnes and a large quantity of wheat has also arrived. In view of the comfortable stocks, the department has been asked to consider at an appropriate time open market sales.

Reviewing the price situation of onions, it has been decided that National Feferation of Marketing should examine the possibility of increasing the supply of onions at concessional rates from 30 tonnes to 50 tonnes per day in Delhi.

The special action committee on prices had held a meeting on August 25 and reviewed the price as well as stock situation of various essential commodities. It also studied the crop prospects of rice, wheat, onions, potatotes, edible oils as well as the impact of the monsoon on various parts of the country. The rainfall was very well spread out and as of now the crop situation appeared to the bright, the spokesman said.

Availability of essential commodities has improved and the total stock of rice and wheat as on July 1 last totalled 28.51 million tonnes which was higher by 6.2 million tonnes than the quantity required under buffer stocking norms of the central pool.

With regard to shortage of onions in the capital, Nafed had been directed to secure supply from Gujarat, Maharashtra, Rajasthan and Haryana and distribute them at Rs ten a kg.

It started on July 14 and by August 19 more than 800 tonnes of onions had been distributed in Delhi.

Besides making available wheat from the public stocks, the roller flour mills have been allowed the import of wheat requirements under OGL.

With regard to edible oil, the government has decided to import 150,000 tonnes of edible oil by the STC for distribution through the public distribution system, 98,000 tonnes have been contracted and two vessels have arrived with five more expected before the month-end.

UNI