The government?s inflation control measures have acquired an added impetus with festivals just round the corner and the expected surge in demand.
After banning exports of non-basmati rice and scrapping of import duty on crude edible oils, the government is now planning to extend the ban on maize exports beyond the October-end deadline and also withdraw the export benefits on oilmeals.
Sources said that the government is gearing up to increase availability of key commodities during the festival season and would consider easing of these tight norms on maize, rice, edible oils and wheat only after festivals end. ?The aim is to ensure that there is no shortage of edible oil, milk, sugar, rice and wheat and other such commodities whose demand goes up before and during the festival season,? a senior official said, adding that non of the proposals on easing export curbs have been accepted by the government.
?Even now there is no shortage in food items. Besides, the kharif crop is likely to be good and the prices of main commodities will weaken further. Only then any decision on lifting export curbs could be considered,? the official said. The government is also releasing additional sugar quotas and also huge quantities of rice and wheat.
The government released an additional 500,000 tonnes of sugar in the open market in August to augment supplies over the 900,000 tonnes already allocated for the month.
The also released additional quantities of edible oils through the public distribution system at a subsidy of Rs 10 per kilogram and is also importing more pulses.
The plan is to sell pulses also through the public distribution system sometime in October. Among the other inflation control measures, the government is also considering a proposal to remove the export incentive on sugar and also re-start the export permit system. At present, the government gives a transport subsidy of Rs 1,350-Rs 1,450 per quintal for sugar exports depending upon the distance of the mills from the port.
To increase availability of main commodities, the government has also decided to sell around 4.0 million-5.0 million tonnes of wheat in the open market from September and also plans to sell around 1.0 million tonnes of rice through the open market sale scheme if the need arises.
Earlier, in a series of steps to tame surging inflation that has threatened to cross 13%, the government-banned exports of non-basmati rice, maize, edible oils and scrapped or slashed import duties on crude edible oils, cotton.
It made cotton exports tougher by making registration of all such exports necessary. Earlier, as part of its administrative steps to tame inflation, it had suspended futures in four farm commodities for four months.