The following is update on actions taken by the Government to maintain adequate availability of foodgrains, edible oils and sugar and to check price rise in these commodities.
Increase in Rice stock: The rice procurement during KMS 2007-08, as on 30.9.2008 was 285.02 lakh tonnes as against the overall procurement of 251.07 lakh tonnes in KMS 2006-07, representing an increase of 13.57% over the previous year. KMS 2008-09 has since commenced from 1.10.2008. Till 4.12.2008, a quantity of 118.72 lakh tonnes of rice has been procured in KMS 2008-09 as against 94.78 lakh tonnes of rice procured during corresponding period in KMS 2007-08, an increase of 25%.
Comfortable stock of foodgrains: It is estimated that the stock of wheat as on 1-4-2009 will be 71.86 lakh tonnes compared to the buffer norms of 40.00 lakh tonnes. Similarly, it is estimated that the rice stock will be 65.94 lakh tonnes as on 1-10-2009, against the buffer norm of 52.00 lakh tonnes. A strategic reserve of 30 lakh tonnes of wheat and 20 lakh tonnes of rice over and above the extant buffer stock has also been created.
Additional Allocation of Foodgrains: In addition to the additional allocation of foodgrains reported last week (on 27.11.2008), further one time special/additional allocation of 5,000 tonnes of rice, for December 2008 at APL rate, has been made to West Bengal and also one time additional allocation of 2500 tonnes of rice, at economic cost in December 2008, has been made to Puducherry for flood relief.
Position of Rice Export: There has been no change in statutory guideline related to Rice exports as reported last week. As against 37.86 lakh tonnes and 6.57 lakh tonnes of non-basmati and basmati rice, respectively, exported in 2007-2008, only 7.06 lakh tonnes and 6.52 lakh tonnes of non-basmati and basmati rice, respectively, were exported in the corresponding period in 2008-09 (upto 30th November 2008).
Steps taken by the Government to control rise in sugar prices: The steps taken by the Government to control rise in sugar prices, as reported on 14.11.2008, has yielded results. During the week ending 28th November 2008 the retail prices of sugar remained unchanged in comparison to the prices ruled in the last week. The retail prices of sugar in the four metro cities were in the range of Rs.20.00 per Kg. to Rs.21.00 per Kg.
Edible oil stock augmentation: Under the Scheme for distribution of subsidized edible oils, upto 10 lakh tonnes of subsidized oils were to be distributed during 2008-2009 through State Governments/UTs as per demand received from State Governments/UTs. So far, orders have been placed for import of 3.60 lakh tonnes of edible oils. Of this about 3.36 lakh tonnes of edible oils have been shipped and till 1.12.2008, about 3.34 lakh tonnes of edible oil have already landed in the country out of which about 1.82 lakh tonne have so far been distributed to various States/UTs by Central PSUs. After implementation of the scheme, edible oil prices have substantially declined and poorer sections were offered edible oils at subsidized rates.
Distribution of subsidized imported edible oils is being done in 12 States/UTs namely Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Maharashtra, Orissa, Tamil Nadu, West Bengal, Karnataka, Sikkim, Nagaland and Rajasthan.
Sufficient edible oil has been contracted for by PSUs for distribution. Decrease in wholesale prices of edible oils: Due to various measures taken by Government, expected good kharif crop of oilseeds and fall in international prices of edible oils, the wholesale prices of soyabean oil, mustard oil and RBD Palmolein have declined by 2.43%, 3.59% and 6.63% respectively, during the last one month (from 1.11.08 to 1.12.08).
Decrease in the international prices of edible oils: The international prices of major edible oil, namely, Soyabean oil have declined by 8.31% during the last one month (from 1.11.08 to 1.12.08), whereas the prices of crude palm oil have increased by 13.73% during the same period.
Exports of all major edible oils have been banned w.e.f 17.03.2008. However, oilseeds can be freely exported. Recently, export of edible oil in small packs upto 5 Kg, subject to a ceiling of 10,000 tonnes upto 30.10.09, has been permitted (w.e.f. 20.11.2008). Department of Commerce is to put in place a suitable mechanism to monitor exports.
The customs duty on degummed soyabean oil has been increased from zero percent to 20% w.e.f. 18.11.2008.
Source : IndiaInfoline