GoM on food prices meets on Wednesday

  • 29/03/2008

  • Economic Times

A GROUP of ministers (GoM) is scheduled to meet here on April 2 for considering measures to check spiralling food prices. These include duty cuts on soybean oil, reviewing the efficacy of the minimum export price imposed on premium nonbasmati rice and, for the first time, basmati varieties as well. Given the fast-changing global commodity price situation, the GoM is likely to meet almost weekly to ensure the government reacts quickly to emerging situations. Describing the meeting as a "stock-taking session', government sources said although an export tax (cess) was needed to curb overseas sales, this move did not had political backing. Despite that, a ban on all non-basmati rice exports is not expected at this juncture. The GoM is also likely to clarify the notification for banning non-edible oils such as castor oil and mango kernel oil. These will continue to be exported, although it is highly unlikely that the GoM will buckle under pressure from traders to lift the export ban on premium coconut oil, groundnut oil and mustard oil.