Exports of wheat would be allowed up to one million tonnes during the financial year and sugar in value-added form up to 25,000 tonnes.

Exports of value-added sugar was in addition to the 30,000 tonnes allowed under the European Union and the US quota.

The decision was taken at the meeting of cabinet committee on prices (CCP), information and broadcasting minister Pramod Mahajan told reporters.

The Government would also ask public sector State Trading Corporation (STC) to procure 10 million kg of flue-cured virgin tobacco from growers with assistance from state governments, he said.

Existing exports of wheat products would also continue, he said. At present, the Centre allows exports of one lakh tonnes of wheat products.

Mahajan said CCP decided to permit unrestricted imports of all oilseeds. Tillnow, only imports of rapeseed, soyabean and sunflower were being allowed under open general license (OGL), which allows unrestricted imports. In another significant decision, the government has decided to allow import of all oil seeds.

The minister said the rate of inflation has been coming down. Every week the cabinet committee on prices will meet and ensure that the price situation remains normal.

He said the Government was aware that August and September are festival months. He said steps would be taken to ensure that people face no no hardships on this account.