Government to release more wheat, rice into market

Its image hammered by the soaring food price inflation, the cabinet committee on prices, at its meeting yesterday, moved into urgent damage control mode, announcing a slew of measures to control prices.

Chaired by Prime Minister Manmohan Singh, the meeting was attended by finance minister Pranab Mukherjee and agriculture and food supply minister Sharad Pawar, among others.

Among the steps announced after the meeting, the centre plans to quickly release two to three million tonnes of wheat and rice in the retail market, using its own agencies like NAFED and NCCF, besides public distribution system (PDS) outlets. This stock will cost more than PDS grain, but will help cool retail rates.

Subsidies under a scheme for cheaper edible oil may be increased too.

The prime minister is expected to meet chief ministers around 27 January in this regard. The government has already asked the states to take tough steps against hoarders, and the prime minister is expected to underline this message.

Talking to the media after the meeting, agriculture minister Pawar expressed confidence that prices would begin to moderate in a week or 10 days. But he also pointed to the sharp difference between the wholesale and retail prices. ''In Delhi itself, potatoes are a little under Rs5 a kg (wholesale) but cost Rs11 a kg at sales points,'' he said. Similar was the case with onions, dals and groundnut oil, he added.