The
government has allowed the private sector to import wheat
and sugar while ordering an immediate ban on the export
of pulses in a bid to curb galloping prices of essential
commodities. These decisions were taken by the cabinet
committee on prices (CCP) which discussed the issue of
price rise, finance minister P Chidambaram told reporters
at a press conference.
Chidambaram
said this would enable the private sector, especially
flour mill owners producing wheat products, to import
wheat from the international market.
The
decision comes in the wake of a sharp rise in prices of
essential commodities, especially food items, and a growing
resentment among consumers.
Prices of sugar and lentils have increased more than 20
per cent in the month, while cost of vegetables have increased
fourfold in some cities.
Wheat,
sugar and pulses were the three prime articles showing
a rising price trend and driving the price rise, Chidambaram
said. He, however, discounted the wide fluctuations in
the prices of vegetables, saying "there are always
seasonal fluctuations."
Private
imports of sugar will only be allowed till September-end
as the government is expecting sufficient sugar production
in the next season, he said.
On
pulses, he said, there has always been a gap between supply
and demand and by halting export of lentils, the government
expects to augment supply.
He
also urged state governments to deal with the problem
of hoarding by private traders. The finance minister said
the cabinet secretary
has been directed to suggest ways of regulating the commodity
market and his report is expected in a few days. A bill
aimed at providing a regulatory mechanism for the commodity
market is still pending in Parliament, he added.
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