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.
A: FOODGRAINS
· Increase in Rice stock: The rice procurement during KMS 2007-08, as on 30.9.2008 was 284.91 lakh tonnes as against the overall procurement of 251.07 lakh tonnes in KMS 2006-2007, representing an increase of 13.48% over the previous year. KMS 2008-09 has since commenced from 1.10.2008. Till 7.1.2009, a quantity of 167.92 lakh tonnes of rice has been procured in KMS 2008-09 as against 140.17 lakh tonnes of rice procured during corresponding period in KMS 2007-08 – an increase of 20%.
· Comfortable stock of foodgrains: It is estimated that the stock of wheat as on 1-4-2009 will be 91.78 lakh tonnes compared to the buffer norms of 40.00 lakh tonnes. In addition there is a strategic reserve of 30 lakh tonnes of wheat. Similarly it is estimated that the rice stock will be 73.73 lakh tonnes as on 1-10-2009, against the buffer norm of 52.00 lakh tonnes.
· Additional Allocation of Foodgrains :
There is no change in position with regard to allocation of foodgrains reported last week (on 31.12.2008).
· Position of Rice Export
In order to maximize procurement of rice and keep domestic prices at reasonable level, the Government decided to restrict export of non-basmati rice. As against 41.36 lakh tonnes and 7.51 lakh tonnes of non-basmati and basmati rice, respectively, exported in 2007-2008, only 7.17 lakh tonnes and 7.45 lakh tonnes of non-basmati and basmati rice, respectively, has been exported in the corresponding period in 2008-2009 (upto 31st December 2008).
B: SUGAR
· 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 previously, has yielded results. During the week ending 2nd January 2009, the retail prices of sugar remained unchanged in comparison to the prices ruling during 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.21.50 per Kg.
C: EDIBLE OIL
· 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 3.54 lakh tonnes of edible oils have been shipped and till 5.1.2009, about 3.52 lakh tonnes of edible oil have already landed in the country out of which about 2.04 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 provided edible oils at subsidized rates.
· Distribution of subsidized imported edible oils was 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 by PSUs for distribution through State GovernmentsUTs.
· Decrease in wholesale prices of edible oils: Due to various measures taken by Government and expected good crop of oilseeds, the wholesale prices of mustard oil, groundnut oil, sunflower oil, sesame oil, coconut oil, and rice bran oil have declined by 3.28%, 16.67%, 4.05%, 2.92%.and 0.56% respectively during the last one month (from 5.12.08 to 5.1.09).
· Decrease in the international prices of edible oils: The international prices of sunflower oil have declined by 6.25% during the last one month (from 5.12.08 to 5.1.09). However, the international prices of CPO and soyabean oil have increased by 21.22% and 4.30% respectively 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 will 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.
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