Saturday, January 8, 2011

Govt raises APL foodgrain prices by over 40 per cent

In a major decision that is likely to add to the double-digit food inflation, the government has quietly raised foodgrain prices for Above Poverty Line (APL) families by over 40 per cent.

The decision to this effect was taken at the meeting of the Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh on December 30.

“The Committee considered the note dated 04/10/2010 from the Ministry of Consumer Affairs, Food and Public Distribution, Department of Food and Public Distribution and approved the proposal contained in paragraph 17 thereof,” read the minutes — dated January 4, 2011 — of the December 30 meeting, circulated by the Cabinet Secretariat.

Sources in Krishi Bhavan said ‘paragraph 17’ had proposed a hike of over 40 per cent for wheat and rice being distributed to APL families through the public distribution system. Accordingly, wheat prices would be revised up from Rs 6.10 per kg to Rs 8.55 per kg. Likewise, rice would be priced at Rs 11.85 per kg as against the current price of Rs 8.30 per kg.

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