Agri Business

‘Pressure on agri-commodity prices likely to stay’

PTI New Delhi | Updated on March 12, 2018

Ahead of ministers’ panel meeting scheduled next week to review the export ban on wheat and non-basmati rice, the Commerce Secretary, Mr Rahul Khullar, today said pressure is likely to stay on agri-commodity prices.

However, he said that the Government policies should not reflect a “knee-jerk reaction’’.

An empowered group of ministries (EGoM) is scheduled to review the issue on July 11. The Food Ministry has moved a proposal to export 2 million tonnes of wheat and 1 mt non-basmati rice.

Export of wheat and non-basmati rice has been banned since February 2007, and April 2008, respectively in the backdrop of high food inflation.

“My own sense is that the pressure on agri prices is going to continue. I also think that domestically the (pressure on) prices is going to continue even more,” Mr Khullar told a WTO function here.

When asked about allowing wheat and non-basmati rice exports, he said the issue would be discussed next week.

Food inflation fell to a one-and-a-half month low of 7.78 per cent for the week ended June 18.

Currently, the Government godowns are overflowing with over 65 mt of foodgrains, while the storage capacity is only 62.23 mt.

The Agriculture Ministry has pegged the total foodgrains output at 245 mt for the 2011-12 crop year against 235.88 mt last year.

Published on July 06, 2011

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