No answers at PM’s meet to discuss rising food prices

The sharp jump (from 14.44 per cent to 18.32 per cent in a week’s time) in food inflation was due to a spurt in the price of vegetables (58.85 per cent),onions (82.47 per cent),fruits (19.99 per cent),milk (19.59 per cent) and meat (20.83 per cent). The government,until now,was relying on the fresh supplies of onions from Gujarat and other states coupled with delivery of onion imports.

In particular,the government pinned its hopes on over 500 tonnes of onion imports from Pakistan that is expected to reach Mundra port by the 14th of this month. Government officials said that this delivery will be transported to the National Capital. While the landed cost of onion imported from Pakistan is estimated at Rs 32 per kg,the cooperative major NAFED will be supplying it to consumers at Rs 35 per kg.

To contain the price rise in other commodities,the government is all set to reverse the Cabinet Committee on Economic Affairs’ (CCEA) decision of hiking the above poverty line (APL) food grain prices by over 40 per cent and also put a spanner in granting release orders for the export of sugar.

“It is just a matter of paper work to reverse the APL food grain price hike. But the decision (of hike in APL food grain prices) is not going to be implemented,” confided one government official. In another move,the food ministry is learnt to have decided to delay issuing the release order for 5 lakh tonnes of sugar export for which the ministry has already invited applications. Pawar,after the meeting,has decided to refer the issue to an EGoM.