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Government cuts palmolein prices, lifts curbs on onion exports

In view of the continuous fall in the prices of imported edible oil, the government today announced reduction in the central issue price of imported palmoleine oil by Rs 2,000 a tonne -- both for bulk and 15-kg tin buyers.

The government also lifted all export curbs on Bangalore rose and Krishnapuram variety of onion and allocated an export quota of 50,000 tonnes of onion in view of higher production, which was placed at 47.5 lakh tonnes, against domestic consumption of 39 lakh tonnes.

All these decisions were taken at a meeting of the Cabinet Committee on Prices, or CCP, this morning. The meeting was held under the chairmanship of Prime Minister Atal Bihari Vajpayee.

An official spokesperson told reporters after the meeting that the 34,000 tonnes of palmoleine stocks were ''sufficient''. India is a major edible oil importer, especially of palmolein.

It also announced the continuation of procurement of rubber by State Trading Corporation, or STC, in the open market to prop up the prices, which have been ruling around Rs 28 a kg.

All the three important decisions were taken at the Cabinet Committee on Prices, CCP, held this morning under the chairmanship of Prime Minister Atal Bihari Vajpayee.

An official spokesperson told newspersons after the CCP meeting that the palmolein prices sold in bulk to states have been reduced to Rs 18,000 a tonne from Rs 20,000 with immediate effect.

However, the edible oil sold in 15 kg packing would be sold at Rs 20,000 instead of Rs 22,000 a tonne. The price of palmolein has been reduced in view of the fall in international market prices.

The CCP expressed satisfaction over the price and supply situation of all major essential commodities like wheat, rice and sugar.

The CCP has noted that the inflation rate calculated on the basis of wholesale price index was lower at 3.74 per cent as on March 25 against 4.81 per cent a year ago.

The CCP decision of continuation of procurement was ex-post facto approval, which allowed STC to procure 20,000 tonnes of natural rubber at the prevailing market price not exceeding Rs 34.05 a kg with certain condition.

As per the restriction imposed by the CCP, the procured rubber by STC would be sold to advance licence holders at international prices on the existing terms and conditions with a slight modification that procurement and supply will be made on the bases of indents placed by such licence holders.

The government has already banned the import of rubber.

A spokesperson said the objective of the proposal was to arrest further drop in prices of natural rubber and make it available to advance licence holders who would have otherwise gone in for import under duty exemption scheme.

Export of onion will be subject to following conditions: a refundable deposit of Rs 100 a tonne is to be imposed if exports are completed and forfeiture upon failure to export, all onions exported will be subject to a minimum export price, and the agencies shall ensure that the quantities released are actually exported within the time limit up to May 31, 2000.

UNI

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