Price hikes for essential commodities this festive season? Government's answer
The government has assured citizens that there will be no price hikes for essential commodities during the upcoming festive season. "The upcoming festival season is looking good. We are not anticipating any kind of spike in prices of essential commodities," Food Secretary Sanjeev Chopra said on Wednesday. This announcement comes amidst rising inflation concerns and is expected to bring relief to households relying on everyday items such as wheat, rice, sugar, and edible oils.
Government's strategy to maintain stable wheat prices
The Ministry of Food Distribution and Consumer Affairs has emphasized that wheat prices will also remain stable. The government will not be releasing wheat into the open market, but traders still hold a stock of around 10 million tons. This reserve is expected to help keep wheat prices in check as traders have been asked not to raise prices.
Government's measures to control essential commodities' prices
Effective September 14, the government raised the basic customs duty on crude soybean oil, palm oil, and sunflower oil to 20% from nil. Additionally, the basic customs duty on refined palm oil, refined sunflower oil, and refined soybean oil was increased from 12.5% to 32.5%, bringing the effective duty on refined oils to 35.75%. These changes are part of the government's efforts to support domestic oilseed growers, particularly with fresh soybean and groundnut crops set to hit markets in October.
1.3 million tonne of edible oils in stock
Chopra noted that 1.3 million tonne of edible oils imported at zero duty are still in stock, and the industry has been told to sell this inventory at current prices until exhausted. He emphasized that numerous initiatives implemented last year have helped keep vital commodity prices under control, citing this as an accomplishment of Prime Minister Narendra Modi's third term in power.
