New Delhi:
Under attack from the Opposition and allies on rising food prices and concerned at food inflation being at an 11-year high, the Centre has decided to release surplus wheat and rice into the market and taken a slew of other decisions to tackle the problem.
After these measures, prices are likely to come down in 10 days or so, said Union Agriculture Minister Sharad Pawar.
Expecting states to play more active role in containing rising food prices, the Prime Minister has called a meeting of the chief ministers on January 27 and will review the situation with them.
"The Prime Minister will hold a meeting with the chief ministers very soon to discuss food prices and will ensure full lifting of wheat and rice. In the last two months, sizeable quantity of food and rice was allotted to states but offtake was not enough. At the chief ministers meeting, we would like to ensure full lifting of wheat and rice allocated. State governments will be expected to play full role," he said.
Most of the decisions taken by the Cabinet on Wednesday were targeted at wheat rice and sugar.
"Two-three million tonnes of wheat and two lakh tonnes of rice would be released in the open market in the next two months to check prices," Sharad Pawar told reporters after the meeting of the Cabinet Committee on Prices.
The food ministry has also suggested to allow the import of white sugar till December 2010. At present, sugar mills and traders can import till March this year.
"We will allow import of white sugar at 0 per cent duty till Dec 31, 2010. Centre has waived duty on sugar, but some governments imposed VAT," he said.
The Centre has also sidestepped Uttar Pradesh over the conflict of processing raw sugar. So it's allowed other states to pick up the raw sugar imported and meant for the state.
"Bulk of raw sugar still lying in ports as Uttar Pradesh imposed restrictions. We have urged the state government to lift restrictions, but to no avail," he said.
Food inflation is currently between 18 to 20 per cent, an 11-year high.
Agriculture Minister Sharad Pawar in particular has been in the eye of the storm, with not only the Opposition but even allies and the government putting pressure on him to control prices at the earliest.
The BJP is planning a nationwide protest on the issue on January 18.
After these measures, prices are likely to come down in 10 days or so, said Union Agriculture Minister Sharad Pawar.
Expecting states to play more active role in containing rising food prices, the Prime Minister has called a meeting of the chief ministers on January 27 and will review the situation with them.
"The Prime Minister will hold a meeting with the chief ministers very soon to discuss food prices and will ensure full lifting of wheat and rice. In the last two months, sizeable quantity of food and rice was allotted to states but offtake was not enough. At the chief ministers meeting, we would like to ensure full lifting of wheat and rice allocated. State governments will be expected to play full role," he said.
Most of the decisions taken by the Cabinet on Wednesday were targeted at wheat rice and sugar.
"Two-three million tonnes of wheat and two lakh tonnes of rice would be released in the open market in the next two months to check prices," Sharad Pawar told reporters after the meeting of the Cabinet Committee on Prices.
The food ministry has also suggested to allow the import of white sugar till December 2010. At present, sugar mills and traders can import till March this year.
"We will allow import of white sugar at 0 per cent duty till Dec 31, 2010. Centre has waived duty on sugar, but some governments imposed VAT," he said.
The Centre has also sidestepped Uttar Pradesh over the conflict of processing raw sugar. So it's allowed other states to pick up the raw sugar imported and meant for the state.
"Bulk of raw sugar still lying in ports as Uttar Pradesh imposed restrictions. We have urged the state government to lift restrictions, but to no avail," he said.
Food inflation is currently between 18 to 20 per cent, an 11-year high.
Agriculture Minister Sharad Pawar in particular has been in the eye of the storm, with not only the Opposition but even allies and the government putting pressure on him to control prices at the earliest.
The BJP is planning a nationwide protest on the issue on January 18.
Track Latest News Live on NDTV.com and get news updates from India and around the world
