Pointing to the ample availability of wheat, rice and sugar in India, Food Secretary Sanjeev Chopra has said that stability is expected in food prices during the current festive season. Terming the government's trade policy in the past few months along with OMSS, stock limits and duties, responsible for stable food retail prices, the Secretary told CNBC-TV18 that the Customs Department has been advised to ensure stricter checks at ports to ensure no export of non-parboiled rice.

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Export of wheat and rice continues to remain banned, with a few exceptions allowing government-to-government export, even as sections of exporters have urged a review of the decision.

Responding to the demand for relaxation in export conditions and several other issues, some sections of traders and exporters approached the government for relaxation on several counts. He said that government policy should be measured against the touchstone of fulfilling the needs of the entire 140 crore population of India.

With 57 lakh tonnes (LT)) of sugar stocks available as of October 1, sufficient for 2.5 months of domestic consumption, more stocks are expected to start arriving from November as the sugarcane harvest and crushing has begun. Stating that exports of sugar will continue to be restricted, the Food Secretary reason that the stress of moisture in the existing sugarcane crop may impact production in the next season, and the government is trying its best to protect consumers from price shocks.

With 3.5% annual inflation observed in wheat, the government said it is prepared to increase the sale under OMSS from the current available stock of 87 LT if the need arises.

While the Food Secretary described wheat prices as "stable" in the wholesale and retail market, he pointed out the inflation in rice has been hovering around 11% over the past few months, and the government expects a sharp drop in prices on the back of the 210 LT rice stock available with the Food Corporation of India (FCI) and the newly harvested Kharif crop for which milling is expected to start soon.

The Union Government is also considering proposals by exporters from Punjab, Haryana and Uttar Pradesh for a reduction in MEP (minimum export price) for basmati rice from the current level of $1,200 per ton.

The industry had urged an interministerial committee to reduce the MEP for basmati rice to boost export competitiveness, with exporters claiming that they couldn't win orders in global food fairs due to a higher MEP of $1,200 per quintal.

(Edited by : Anand Singha)