High global foodgrain prices not to impact India: govt

The government today said soaring international foodgrain prices are not likely to have any impact on domestic rates as the requirement of import of vital foodgrain items like wheat and rice is almost zero.

"The increase in the international prices of rice and wheat are not likely to have impact on domestic prices as the requirement of import is almost negligible," Food Minister K V Thomas said in a written reply in Lok Sabha.

Thomas, however, admitted that in the case of pulses, 15% of our needs are imported and therefore the international prices are likely to impact India to some extent.

The minister quoting UN's food organisation FAO said the global food system is becoming more vulnerable and susceptible to price volatility because of increase in extreme weather evens such as severe drought in some countries and heavy rainfall in other regions.

Global production of cereals in 2010-11 as estimated by agencies such as Food and Agriculture Organisation (FAO), International Grains Council (IGC) and United States Department of Agriculture (USDA) indicate a 2-2.5% decline as compared to 2009-10, he added.

The decline estimated is mainly in production of wheat by around 5% and coarse grains by 2-3%, he said.

On steps taken to contain domestic prices of essential commodities, Thomas said, the government has reduced import duties to zero for rice, wheat, pulses and also banned export of non-basmati rice and wheat until further order among others.