While pulses prices have soared due to shortfall of supply by over 7 million tonnes, the production of tomato and potato has also been affected due to drought.
Wheat prices have also moved up in the last few weeks but government today decided to extend the 25 per cent import duty on wheat, betting on its estimates of 9 per cent rise in domestic output.
Government has taken several steps to control prices of pulses that include enhancing the buffer stock to 8 lakh tonnes from 1.5 lakh tonnes, increasing imports, barring launch of any fresh future contracts in 'chana' and directing enforcement agencies to act against hoarders.
Production of pulses is estimated to have declined to 17 million tonnes in 2015-16 crop year (July-June) due to drought as against annual domestic demand of 24 million tonnes.
The country imported about 5.5 million tonnes of pulses, largely through private traders, last fiscal.
Among vegetables, prices of tomatoes were as high as Rs 80 per kg, while potatoes were being sold up to Rs 35 per kg.
On tomato prices, Agriculture Secretary Shobhana K Pattanayak said it is a "temporary phenomenon" and rates would cool down soon with the arrival of fresh crops.
The government is exploring the feasibility of contract
farming of pulses in African countries -- Mozambique, Tanzania and Malawi -- as it looks for a long-term solution to domestic shortage and high prices.
A delegation may visit Mozambique to examine the possibility of growing pulses through contract farming, a senior government official said.
In view of rising prices of wheat and wheat flour, the Food Ministry had discussed with the Finance Ministry the option of scrapping the import duty on it to boost supply.
"25 per cent import duty on wheat has been continued further," Food Minister Ram Vilas Paswan said in a tweet.
As per the Agriculture Ministry's third advance estimate, wheat output has risen to 94.05 million tonnes in the 2015-16 crop year (July-June) from 86.53 million tonnes in the previous year.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
