The following is update on actions taken by the Government to maintain adequate availability of foodgrains, edible oils and sugar and to check price rise in these commodities.
· Increase in Rice stock: The rice procurement during KMS 2007-08, as on 30.9.2008 was 284.29 lakh tonnes as against the overall procurement of 251.07 lakh tonnes in KMS 2006-2007, representing an increase of 13.28% over the previous year. KMS 2008-09 has since commenced from 1.10.2008. Till 27.10.2008, a quantity of 106.73 lakh tonnes of Paddy has been procured in KMS 2008-09 as against 98.93 lakh tonnes of Paddy procured during corresponding period in KMS 2007-08.
· Comfortable stock of foodgrains: It is estimated that the stock of wheat as on 1-4-2009 will be 81.35 lakh tonnes compared to the buffer norms of 40.00 lakh tonnes. Similarly it is estimated that the rice stock will be 64.13 lakh tonnes as on 1-10-2008, against the buffer norm of 52.00 lakh tonnes.
· Additional Allocation of Foodgrains:
| S.No. | Nature & Foodgrain | Quantity(MT) & Period | Category of Allocation |
| 1. | Adhoc/Additional- Wheat | (i) 96,500 tonnes per month (July-Sept.2008) (ii) 63,169 tonnes-Sept.2008 (iii) 2,00,000 tonnes per month(Oct.-Dec.2008) | At APL rate for various States. |
| 2. | Adhoc/Additional-Rice & Wheat-during Festival period. | (i) 36,000 tonnes of rice (ii) 1,92,000 tonnes of wheat | At APL rate for various States. |
| 3. | Special Allocation | (i) 20,000 tonnes of rice
(ii) 26,000 tonnes of rice per month (Oct-Dec,2008)
| For TPDS beneficiaries of J&K at APL rates Allotted at APL rate to Andhra Pradesh as Incentive for higher procurement during KMS2007-08. |
| 4. | Additional Allocations | (i)5000 tonnes of rice (One Time)
(ii)1500 tonnes of rice per month.{Oct 2008 to Mar 2009} (iii)8000 tonnes of rice per month {Oct 2008 to Mar 2009}
| (i) A&N Islands
(ii) Manipur (iii) Mizoram At Economic rate of Rs.16,989 per tonne |
Position of Rice Export During 2007-08, the domestic price of rice started showing upward trend. With a view to contain the rise in price of rice in the domestic market and increase availability of rice in country, export of non-basmati rice has been banned w.e.f. 01.04.2008. A minimum export price has been fixed for export of basmati rice. Presently, MEP of basmati rice is US$1200 per tonne or Rs.48,000 per tonne w.e.f. 01.04.2008. In addition, a custom duty of Rs.8000 per tonne has been imposed on export of basmati rice vide Notification dated 10.05.2008. Thus, as against 31.44 lakh tonnes and 5.66 lakh tonnes of non-basmati and basmati rice respectively, exported in 2007-08, only 6.87 lakh tonnes and 5.44 lakh tonnes of non-basmati and basmati rice were exported in the corresponding period in 2008-09(upto21.10.2008). Steps taken by the Government to control rise in sugar prices The Government reinforced the directions of complete sale of dismantled first buffer stock by 30th September 2008 and 25% of the dismantled second buffer stock in August and September, 2008 by an order dated 8.9.2008 and to convert unsold/undespatched buffer stock as well as normal non-levy quota to levy sugar. It was also indicated in the order that penal action under Essential Commodities Act, 1955 would also be initiated against defaulting sugar mills. The order has been partially relaxed in respect of normal non-levy quota of September, 2008 by extending the validity period for sale/dispatch by 15 days on 29.9.2008. However, no extension has been allowed for sale/dispatch of dismantled buffer stocks, As such, unsold/undespatched stocks out of dismantled first buffer stock and 25% of the dismantled second buffer stock stands converted to levy sugar. The Central Government has decided to make available 52 lakh tonnes of non-levy (Free-sale) sugar for the quarter October-December, 2008 as against 42 lakh tonnes made available during the corresponding quarter (October-December, 2007) of the last sugar season. The Government has also decided that any unsold/undespatched stocks out of normal quota during a month and 30% of the remaining 75% of dismantled second buffer stock, which is required to be sold/dispatched by the end of the October-December, 2008 quarter, shall stand converted into levy sugar. Besides, penal action may also be taken against the defaulting sugar factories under the Essential Commodities Act, 1955. Sugar factories have been directed to sell the remaining 75% of the 2nd buffer stock during 2008-09 sugar season in the domestic market without requirement of release orders from the Directorate of Sugar as per the schedule given below:
| Quarter | Percentage |
| First quarter (Oct-Dec) | 30% of 75% |
| Second quarter (Jan-Mar) | 20% of 75% |
| Third quarter (Apr-Jun) | 30% of 75% |
| Fourth quarter (Jul-Sep) | 20% of 75% |
· Edible oil stock augmentation: Under the scheme for distribution of subsidized edible oils, out of 10 lakh tonnes of subsidised edible oils to be distributed during 2008-2009 through State Governments/UTs. So far, orders have been placed for import of 3.60 lakh tonnes of edible oils. Of this, 2.81 lakh tonnes of edible oil has been shipped. Till 27.10.2008, 2.69 lakh tonnes of edible oil has already landed in the country and about 1.56 lakh tonnes have so far been distributed to various States/UTs by Central PSUs.
· Distribution of subsidized imported edible oils have already started in 12 States/UTs namely Andhra Pradesh, Chhatisgarh, Gujarat, Himachal Pradesh, Maharashtra, Orissa, Tamil Nadu, West Bengal, Karnatka, Sikkim, Nagaland and Rajasthan.
· Distribution of subsidized imported edible oils is likely to commence shortly in Delhi, Uttar Pradesh & Pondicherry.
· Edible oil has been contracted by PSUs for distribution upto November/December, 2008.
· Decrease in wholesale prices of edible oils: Due to various measures taken by the Government, good kharif crop of oilseeds expected and fall in international prices of edible oils, the wholesale prices of soyabean oil, mustard oil, groundnut oil, and RBD Palmolein have declined by 17.95%, 4.69%, 1.56% and 19.62% respectively since last month (from 27.09.2008 to 27.10.2008).
· Decrease in the international prices of edible oils: The international prices of major edible oils, namely, crude palm oil and soyabean oil have declined by 42.96% and 29.76% respectively in the last one month (from 27.09.2008 to 27.10.2008).
· Exports of all major edible oils have been banned w.e.f 17.3.2008. However, oilseeds can be freely exported.
MP:CP: foodsector(31.10.2008)