Commodity Online
NEW DELHI: The increased rice procurement at 269 lakh tonnes during kharif marketing season (KMS) 2007-8 till date, increased stock of wheat expected by April 2009 and additional release of sugar quota, proactive measures to bring down edible oil prices will have a dampening effect on inflation, according to the Union Government.
Increase in Rice stock: The rice procurement in KMS 2007-08, as on 26-08-2008 was 269.09 lakh tons as against the overall procurement of 251.07 lakh tons in KMS 2006-2007, representing an increase of 7.18% over the previous year. In August 2008, 6.06 lakh tons of rice has been procured in KMS 2007-08, as compared to 1.09 lakh tons rice procured in August 2007.
Comfortable stock of foodgrains: It is estimated that the stock of wheat as on 1-4-2009 will be higher at 78.60 lakh tons compared to the buffer norms of 40.00 lakh tons. Similarly it is estimated that the rice stock will be 62.43 lakh tons as on 1-10-2008, against the buffer norm of 52.00 lakh tons.
Ad-hoc APL Wheat allocation : With a view to keep prices of foodgrains in the open market under check and also to meet the rising demand during ensuing festivals the Government has made an ad-hoc allocation of about 96,500 tons of wheat under APL category for the months of July 2008 to September 2008 to various States.
A Publicity- cum- Awareness Campaign is underway for giving wide publicity to the salient features of the Targeted Public Distribution System (TPDS) so that the beneficiaries become aware of the Scheme and take advantage of the allocations being made by the Central Government under the TPDS to States.
Decrease in wholesale prices of Sugar: After release of additional quota of 2 lakh tonnes for August, 2008 and announcement of additional quota of 3 lakh tons for September 2008 the rise in sugar prices have been checked and sugar prices have declined in the range of Rs.50 to Rs.170 per quintal as on 27.08.2008. A close watch is being kept on the trend of sugar prices and, if needed, additional quantity would be released to check the prices.
Edible oil stock augmentation for PDS Distribution: under the scheme for distribution of subsidized edible oils, out of 10 lakh tons of subsidised edible oils to be distributed during 2008-2009 through State Governments, so far, orders have been placed for 3.08 lakh tons of edible oils. Of this, 1.99 lakh tons of edible oil has been shipped. Till 25.08.2008, 1.81 lakh tons of edible oil has already landed in the country and about 77,741 tons have so far been distributed to various States by Central PSUs. International prices of Palm Oil have come down by $425/ton during the period since 1st April 2008.
Decrease in wholesale prices of edible oils: Due to proactive measures of the Government the wholesale prices of soyabean oil, mustard oil and RBD Palmolein have declined by 8.14%, 4.07% and 11.57% respectively since last month (from 27.07.2008 to 27.08.2008).
Decrease in the international prices of edible oils : The international prices of major edible oils, namely, crude palm oil and soyabean oil have declined by 24.00% and 7.30% respectively since last one month (from 27.07.2008 to 27.08.2008).
