Pulse export banned, pvt sector can import wheat

New Delhi, June 22: The government today allowed private parties to import wheat and sugar and imposed an immediate ban on the export of pulses as part of a slew of measures to check the spiralling prices of some essential commodities.

Sugar, however, will be allowed to be imported only till September 30 under a specified tariff and quota, Finance Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Prices chaired by Prime Minister Manmohan Singh which took the decisions.

The tariff and quota for the sugar import would be announced later today or tomorrow after consultations with Agriculture Minister Sharad Pawar, Mr Chidambaram said.

''I am confident that these decisions will dampen inflation and bring about restraint in the market,'' the Finance Minister said.

The state governments would be advised to clamp down on hoarding and black- marketeering wherever necessary to bring down the prices of essential commodities, he said.

The decisions on import and export were restricted to the three commodities as it was felt that these were primarily ''driving the prices'' upwards, Mr Chidambaram said.

Asked about the rising prices of tomatoes, particularly in Delhi, the Minister said the trend was seasonal and would be dealt with by respective state governments.

The supply of sugar was expected to be adequate after the crushing season in September and hence the import was restricted till that time, he said.

The government had already imported some quantities of wheat and a few tenders were being processed, but today's decision also allowed the private parties to import wheat in adequate quantities.

Wheat import was being broad-based to augment supply, particularly for the flour mills which would require the commodity for wheat products, he said.

On pulses, he said the government had already removed the import duty on the commodity and the quantity of import would depend on availability in the world market.

There would be an immediate ban on the export of two categories of pulses which were being allowed to be traded abroad, he said.

Replying to questions, Mr Chidambaram said the prices of manufactured articles were ''extremely low'' and there was no need for any government intervention in this regard.

To a specific questions whether the imports meant that India had lost the glory of being a food suplus nation, he said the reasons for the move had already been explained by Mr Pawar and the Food Processing Minister.

Wheat production had stagnated for seven to eight years, while the demand kept rising, he said.

To another query, he said there would be no dilution of the internationally accepted Codex norms for the import of wheat.

UNI