NEW DELHI: At a time when
India’s monthly food budget is soaring, the government is planning to once
again permit export of kabuli chana, masoor, and sugar against advance licences.
There is even a special request from the foreign secretary to permit sales of
2,000 tonne of masoor to Sri Lanka.
However, the government plans to review its duty reduction option now that crude palm oil is touching $460/t in the world market. It may also sell more wheat through ration shops, and allow import of urad and moong dal by Nafed to bring down cereal prices. These proposals are part of a cabinet note which has been approved by the committee of secretaries.
They will now be put before the Cabinet Committee on Pricing (CCP) for final approval. The committee of secretaries (CoS), in a meeting late last month to review prices, has recommended that there should be no further reduction in customs duty on cooking oils. Instead, the reduced duty on palm oils, which was applicable up to October 31, 2006, may be extended further.
However, it has suggested a review of the duty reduction option once CPO prices touch $460/t. “Since international prices of palm group of oils are approaching the tariff values frozen since July 2006, a review of the duty reduction option may be undertaken once CPO price touches $460/t,” the CoS has suggested.
Simultaneously, Nafed may be asked to start offloading 5 lakh tonne mustard seeds each month, for the next three months, to encash the “favourable situation” that has developed in a rising cooking oil market.
That would also act as a natural cap on the market. However, while the government wishes to bring down oil prices, it wants to immediately push up kabuli chana and masoor dal prices. The CoS wants curbs to be lifted on kabuli chana and masoor dal as a special case.
The ministry of commerce has recommended export of kabuli chana because it believes the domestic demand is for desi chana and farmers need encouragement for the next season. Kabuli chana, which was ruling at Rs 33/kg is now down to Rs 29/kg in the wholesale market. Similarly, the CoS believes that since there has been only a 0.6% rise in masoor prices over the last one year, exporting it should not be a problem.
Simultaneously, the department of consumer affairs is seeking permission to export processed pulses made entirely from imported raw pulses, under the Advance Authorisation scheme.
However, the government plans to review its duty reduction option now that crude palm oil is touching $460/t in the world market. It may also sell more wheat through ration shops, and allow import of urad and moong dal by Nafed to bring down cereal prices. These proposals are part of a cabinet note which has been approved by the committee of secretaries.
They will now be put before the Cabinet Committee on Pricing (CCP) for final approval. The committee of secretaries (CoS), in a meeting late last month to review prices, has recommended that there should be no further reduction in customs duty on cooking oils. Instead, the reduced duty on palm oils, which was applicable up to October 31, 2006, may be extended further.
However, it has suggested a review of the duty reduction option once CPO prices touch $460/t. “Since international prices of palm group of oils are approaching the tariff values frozen since July 2006, a review of the duty reduction option may be undertaken once CPO price touches $460/t,” the CoS has suggested.
Simultaneously, Nafed may be asked to start offloading 5 lakh tonne mustard seeds each month, for the next three months, to encash the “favourable situation” that has developed in a rising cooking oil market.
That would also act as a natural cap on the market. However, while the government wishes to bring down oil prices, it wants to immediately push up kabuli chana and masoor dal prices. The CoS wants curbs to be lifted on kabuli chana and masoor dal as a special case.
The ministry of commerce has recommended export of kabuli chana because it believes the domestic demand is for desi chana and farmers need encouragement for the next season. Kabuli chana, which was ruling at Rs 33/kg is now down to Rs 29/kg in the wholesale market. Similarly, the CoS believes that since there has been only a 0.6% rise in masoor prices over the last one year, exporting it should not be a problem.
Simultaneously, the department of consumer affairs is seeking permission to export processed pulses made entirely from imported raw pulses, under the Advance Authorisation scheme.
