The central government announced a number of measures to bring down prices as the food inflation for the country soared to new levels. Union minister for food and Agriculture Sharad Pawar assured that drop in prices would be felt in the next 10 days to a fortnight.

As the annual rate of food inflation reached 18.22 % for the week ended December 26, the centre came under criticism from various political sections. A meeting of Cabinet Committee on Prices was called upon to discuss measures to reduce prices.

In the meeting, the ministers decided to allow processing of around 900,000 tonnes raw sugar contracted by Uttar Pradesh sugar mills in other states as the state government has imposed a ban on processing raw imported sugar.

While the import of raw sugar is already allowed at zero duty till the year-end, the government has also decided to extend the zero import duty on refined sugar till December 31.

Pawar said that the price of sugar recorded a drop of Rs 3 a kg in the last two days as the availability rose in the market. He noted that the availability has reached 24.1 million tonnes after 5.64 million tones were contracted and it was more than the annual demand of 23 million tones.

The government has directed states to remove any tax or levy on imported sugar. The states were also directed to check hoarding or black marketing by using power given by the Essential Commodities Act. The home ministry again stressed that the smuggling from the borders should be checked.

A subsidy of Rs 15 per kg on edible oil and Rs 10 per kg on pulses has also been announced by the centre. Ration shops will distribute the subsidized commodities. While, the government has also asked MMTC and STC to increase import of pulses.

Relating to other commodities, the government has decided to release 2-3 mt of wheat and rice in the open market over the next two months, which will be sold by the state agencies to retail consumers. This measure is additional to the allocations already made in the public distribution system.

The cooperative major Nafed and National Consumer Cooperative Federation will help the government distribute wheat, rice, pulses and edible oils through their outlets.

“Up to 500,000 tonnes of wheat and 200,000 tonnes of rice will be distributed through Nafed and NCCF outlets to ensure that the benefit reaches retail consumers,” Pawar said.

The prime minister has called upon a meeting of chief ministers later this month. In the meeting, the price rise along with the implementation of the Essential Commodities Act is expected to be discussed. The centre expects states to enforce the act the check hoarding of essential food items.