New Delhi: Despite the fact that the country has registered a whopping production of wheat and rice, people may not get respite from the soaring foodgrain prices due to the steep hike in diesel rates.

Even though the Union Government has admitted that there will be no decline in foodgrain prices, at the same time it has not ruled out the possibility of export of wheat and rice.

When asked whether there would be any fall in the prices of food products, Union Food Minister K V Thomas said, “Despite the bumper harvest, the rates are unlikely to come down. The Minimum Support Prices (MSP) of food products have been constantly surging which is not allowing the prices of food products to come down.”

According to the Minister, the ministry may give a nod to the export of wheat and rice.

Presently, the inflation rate of food products is slightly above than 9 percent. “The inflation rate may zoom beyond 10 percent by July,” claim experts. The increase in diesel, LPG and kerosene prices will subsequently have an impact on the rates of food grains.

According to official statistics, “The wholesale price of wheat in various parts of the country stands at Rs 13.06 per kg while the price of rice is Rs 23 per kg.”

The data also reveals that in the beginning of the month the central pool contains 3.783 million tonnes of wheat and 2.764 million tonnes of rice.

It is believed that the current stock is 100 percent higher than the country’s actual need. Wheat procurement by the Food Corporation of India (FCI) has touched the record 28 million tonnes which is way higher than the official estimates of 8.8 million tonnes.

Keeping in mind the overflowing grain stocks, some states have suggested the Centre to export two million tonnes of wheat and one million tonnes rice. The Union Government is yet to take a final decision in this regard.

 

(JPN/Bureau)