DARE - Because Entrepreneurs Do

The Government has taken a number of short term and medium term measures to improve domestic availability of essential commodities and moderate inflation. It has procured a record 58.53 million tonnes of food grains (33.30 million tonnes of rice & 25.23 million tonnes of wheat) as on 30.9.2009.  Even after keeping the minimum buffer stock, there is enough food grains to intervene in the market to keep the prices at reasonable level. A Strategic Reserve of 5 million tonnes of wheat and rice has also been created. This is in addition to the buffer stock held by FCI every year.  The Central Issue Price (CIP) for rice at Rs.5.65 per kg for BPL and Rs.3 per kg for AAY) and wheat  at Rs.4. 15 per kg for BPL and Rs. 2 per kg for AAY since July 2002 has also been maintained to protest the interest of families living below Poverty line (BPL) and beneficiaries of Antyodaya Anna Yojana (AAY).
The price situation is reviewed periodically at high-level meetings such as the Cabinet Committee on Prices (CCP) and the Committee of Secretaries.

1. Fiscal Measures

(i)  Reducing import duties to zero – for rice, wheat, pulses, edible oils (crude) and sugar; and maize (under TRQ of 5 lakh tonnes per annum, beyond which 15% duty will apply);

(ii)  Reducing import duties on refined & hydrogenated oils & vegetable oils to 7.5%;

(iii) Allowed import of raw sugar at zero duty under O.G.L. up to 1.8.2009 by sugar mills (notified on 17.4.2009). This has since been extended up to 31.3.2010.

(iv) Allowed import of white/refined sugar by STC/MMTC/PEC and NAFED up to 1 million tonnes by 1.8.2009 under O.G.L. at zero duty (notified on 17.4.2009). This has since been extended up to 30.11.2009.

(v) Levy obligation removed in respect of all imported raw sugar and white/ refined sugar.

2. Administrative Measures

(vi) The export of edible oils is permitted in branded consumer packs of up to 5 kgs, subject to a limit of 10,000 tonnes up to 31st Oct, 2009.

(vii) Banning export of edible oils and pulses (except kabuli chana).

(viii) No changes in Tariff Rate Values of edible oils;

(ix) Imposition of stock limit orders in the case of rice, paddy, pulses, sugar, edible oils and oilseeds;

(x) Using Minimum Export Price (MEP) to regulate exports of onion (averaging at $300 per tonne for October 2009);

(xi) Distribution of one million tons of imported edible oils to States/UTs at a subsidy of Rs.15/kg.

(xii) To augment availability of pulses, the Public Sector Undertakings (namely, STC, MMTC, and PEC) and NAFED were permitted to import and sell pulses under a scheme and losses, if any, up to 15% are reimbursed by the Government.

(xiii) Distribution of imported pulses to State Governments for supply through PDS at a subsidy of Rs.10 per kg.

(xiv) Government permitted sugar factories to sell processed raw sugar in the domestic market and fulfill export obligation on ton to ton basis.

(xv) Release of adequate quantities of non-levy sugar.

(xvi) Banning of future trade in key essential commodities.

In addition to the above, Government has also taken medium  initiatives such as the National Rural Employment Guarantee Programme (NREGP), Integrated Scheme of Oilseeds, Pulses, Oil Palm and Maize(ISOPOM), National Food Security Mission (NFSM) and  Rashtriya Krishi Vikas Yojna (RKVY) to improve production and productivity in agriculture.

Source: PIB

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pricing
written by saravana, September 29, 2010

thank you,
it's simple and understand easily

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