Food prices won't see sharp rise during festival season: Secretary

The government does not see any sharp increase in prices of food items, especially sugar, edible oil and wheat during the upcoming festival season, said Sanjeev Chopra, secretary, Department of Food and Public Distribution. "In the upcoming festival season, I do not see any shrap rise in prices of any commodity (wheat, sugar, edible oil), " Chopra said.

While the country has 85 lakh tonnes of sugar, enough for three and a half months, it has imported sufficient edible oil taking advantage of the rock bottom global prices.

The September rains have allayed any concern about productivity of sugarcane in the upcoming sugar year which starts from October, Chopra added. Recently sugar prices rose due to rumours of crop failure and shortage.

Data compiled by Solvent Extractors’ Association of India (SEA) showed that India imported 18.52 lakh tonnes (lt) of edible oil in August, against 13.75 lt a year ago, registering a growth of 34.69 per cent. India imported 17.55 lt of edible oil in July 2023.

Wheat
However, as the prices of wheat saw an increase of 4% on NCDEX in the last one month, the government has reduced the stock limit on wheat for wholesalers and big chain retailers bringing it down to 2000 tonnes from 3000 tonnes.

They will be expected to align with the new norms by October 12. The increase in spot prices could eventually reflect in the retail prices, Chopra added.

The move is aimed at taming to increase in prices of the cereal. In June, the government, had for the first time in 15 years, had imposed a stock limit on wheat till March 31. However, there has been no change in the norms for processors.

"The country has adequate amount of wheat stocks. However, some people are trying to create artificial scarcity," said Chopra.

He added that the country has 255 lakh tonnes of wheat stock against a requirement of 202 lakh tonnes.

A 30 lakh tonnes surplus wheat available over and above buffer stocks for market intervention and another 57 lakh tonnes already deployed for market intervention.

Rice
He said the centre has been concerned over 10% price rise in rice due to "negative sentiment created by vested interests". The rice stock is 230 lakh tonnes as of now and intensive enforcement drives were being conducted by central and state officers against hoarders under Essential Commodities Act.