Stockholding limits for cereals extended by a year

To help address food inflation, states will now be able to impose limits on cereal stocks for another year. On Thursday, the Cabinet decided to extend an order in this regard till November 30, 2014.

The validity of stockholding limits for paddy and rice, which had been extended regularly, was to expire this month.

"The Cabinet has extended the validity of central orders dated December, 2012 in respect of paddy and rice for one year till November 30, 2014," said an official.

The Cabinet decision is aimed at enabling state governments to continue to carry out effective de-hoarding operations under the Essential Commodities Act, 1955, by fixing stock limits.

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Due to deficient rains in some states, rice production is projected to fall to 92.32 million tonnes (mt) in the kharif season of the 2013-14 crop year (July-June) from 92.76 mt last year.

In October, Wholesale Price Index (WPI)-based food inflation stood at 18.2 per cent; this raised overall WPI inflation to seven per cent.