The Hindu : National : Slew of measures to rein in inflation

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Wednesday, Apr 02, 2008
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National

Slew of measures to rein in inflation

Gargi Parsai

NEW DELHI: In an attempt to rein in inflation, the Union government on Monday reduced the customs duty on several crude edible oils to zero and fixed the customs duty for refined edible oils at 7.5 per cent.

It banned the export of non-basmati rice with immediate effect and set the minimum export price of basmati rice at $ 1200 a tonne. The ban on export of all pulses has been extended for a year from April 1.

After a marathon three hour-long meeting of the Cabinet Committee on Prices that was chaired by Prime Minister Manmohan Singh, Finance Minister P. Chidambaram announced a slew of measures to impact the rising prices.

The inflation rate touched 6.68 per cent last week.

The customs duty on butter and ghee has been reduced from 40 to 30 per cent; the duty on maize reduced from 15 per cent to zero per cent under the Tariff Rate Quota for five lakh tonnes.

The import of crude edible oils at zero duty and refined edible oils at 7.5 per cent customs duty would apply, among others, to palm, sunflower, soyabean, coconut and groundnut oils. Hydrogenated vegetable fats and oils can now be imported at 7.5 per cent duty. However, the tariff values will remain unchanged till further orders.

The government has allowed the export of castor oil, coconut oil and oils made from minor forest produce, excluding sesame oil. However, coconut oil will only be exported from Kochi.

Mr. Chidambaram said the prices of steel and iron were discussed but a decision was deferred as Minister for Steel Ram Vilas Paswan was away. He advised steel producers to “observe restraint.”

The order on removal of stock limits under the Essential Commodities Act was kept in abeyance for edible oils, oilseeds and rice, the Minister said. He urged the States to implement the order to prevent hoarding. Inter-State movement and exports have been excluded from this order.

So far only six States have imposed stock limits.

All decisions would come into effect from Tuesday.

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