New Delhi, Apr 4 : Crossing the market estimate of 6.52 percent, the inflation has reached a three-year high of seven percent.
The market has slipped with the Sensex falling by over 300 points this morning. Vegetables prices too have gone up by as much as 4.9 percent.
The Cabinet Committee on Prices (CCP) chaired by Prime Minister Manmohan Singh on Monday, decided to abolish import duty on all crude edible oils, including palm and soya, and banned the export of non-basmati rice and pulses to contain inflation that is at a 13-month high of 6.68 percent.
All edible oils in crude form can now be imported at zero duty as against 20 per cent now, excluding soya, while the duty on oils in the refined form and vanaspati will be 7.5 percent compared to 27.5 percent and 20 percent respectively.
The Government also decided to raise the Minimum Export Price of basmati rice to 1,200 US dollars per ton from 1100 US dollars, to balance the demand " supply in the domestic market and to cut import duty on butter and clarified butter (ghee) from 40 per cent to 30 per cent, besides, the 15 per cent import duty on maize was abolished, applicable on import of up to five lakh tons.
The CCP also advised states to impose limits on stocks of commodities under the Essential Commodities Act, besides asking steel producers not to raise prices.
The Congress Party has also asked the Government to ban futures trading in more farm items to keep the prices under check.