Press Trust of India / New Delhi Sep 24, 2009, 19:20 IST
Amid rice prices going up, the government today said it has no plans to abolish customs duty on rice import for now as there is sufficient stocks of the foodgrain.
"I don't think that stage has come. We have sufficient stocks in the country," Commerce and Industry Minister Anand Sharma said when asked whether duty elimination on rice import was under consideration of the government.
At present, rice import attracts a duty of 70 per cent.
The rise in retail prices of rice about 25 per cent in the last four months has become a concern for the govenment, and it was believed to be considering reducing or eliminating the duty.
The empowered Group of Ministers headed by Finance Minister Pranab Mukherjee is understood to have reviewed the foodgrain stock situation in August.
Sharma said as a measure to check prices, the government has not been allowing export of non-basmati rice.
When inflation had touched 12 per cent in 2008, the government had scrapped the customs duty on rice but reimposed the same from April this year.
India's rice production touched record in 2008-09 at 99.15 million tonnes, helping the government achieve an all-time-high procurement of rice at about 33 million tonnes. However, crop prospects this year have been affected by drought in about half the country.
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