August 4, 2009 –In order to control rising prices of food commodities the Government of India has taken a large number of steps that include duty-free or low-duty imports, ban on exports, improving distribution and issue of more food commodities through Public Distribution Systems, said Mr. K V Thomas, Minister of State for Agriculture, Consumer Affairs, Food and Public Distribution, here today.
According to Mr. Thomas, Government of India has reduced import duties to zero for wheat, pulses, edible oils (crude) and maize. Also, import duties on refined oils, hydrogenated oils, vegetable oils have been reduced to 7.5% and import duty on Skimmed Milk Powder (SMP) has been reduced from 15% to 5%.
Government allowed import of raw sugar under Advance Authorization Scheme by sugar mills at zero duty upto 30.9.2009 and allowed import of white or refined sugar by State Trading Corporation, MMTC, PEC and NAFED up to 1 million tons by 1.8.2009 under Open General License at zero duty. Levy obligation was removed in respect of all imported raw sugar and white or refined sugar.
The export of edible oils is permitted in branded consumer packs of up to 5 kts, subject to a limit of 10,000 tonnes during the next one year up to 31st October, 2009.
Export of wheat and wheat products on private account was permitted after 15th May 2009, with a cap of 2 million tons in 2009-10. Government imposed ban on export of non-basmati rice, edible oils and pulses. No changes in Tariff Rate Values of edible oils.
Government Imposed stock limit orders in the case of paddy, rice, pulses, sugar, edible oils and oilseeds and imposed Minimum Export Price (MEP) to regulate exports of onion (averaging at US$ 205 per ton for August 2009) and basmati rice (US$1100).
To augment availability of pulses, the Public Sector Undertakings namely STC, MMTC, PEC and NAFED were permitted to import and sell pulses under a scheme and losses, if any, up to 15% are reimbursed by the Government.
Government allowed import of raw sugar under advance authorization Scheme and permitted sugar factories to sell processed raw sugar in the domestic market and fulfill export obligation on tonne to tonne basis.
Released 600000 tons of additional non levy sugar for April-June 2009 Quarter taking the total release to 6000000 tons against 5000000 tons in corresponding Quarter in 2008 and 5000000 tons in January-March 2009.
The availability of non-levy sugar for April’09 including the additional quota released stood at 2200000 tons against 1700000 tons for March, 2009 and 1700000 tons for April 2008. For the month of May, 2009, release of non-levy sugar including additional quota released stood at 2100000 tons against 1750000 tons for May 2008. For the month of June, 2009, the release of non-levy sugar stands at 1600000 tons as against release of 1350000 tons for June 2008. Besides about 100000 tons of raw sugar imported and reprocessed by sugar mills have been released during the month of June 2009. For the month of July 2009 a quantity of 1490000 tons of sugar has been released which includes 1267000 tons of normal non-levy sugar, 133000 tons of dismantled buffer stock and 90000 tons of refined raw sugar imported by sugar mills.
In the medium term, Government has taken initiatives such as the Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize (ISOPOM), National Food Security Mission (NFSM) and Rashtriya Krishi Vikas Yojna (RKVY) to improve production and productivity in agriculture.
Source : FBD