Volatile price and polls likely behind rejig of duties, export cap

The Central government in a slew of measures late last week eased some of the export curbs on key commodities

The Centre last week eased export curbs on key commodities while raising the import duties on some in order to lift farm gate prices and also keep inflation in check. Observers say measures that were announced just weeks before the Assembly polls in Haryana, Jharkhand, Jammu & Kashmir, and Maharashtra were meant to woo the rural electorate, which is reeling under the impact of falling prices. Business Standard takes a look at how the retail and wholesale prices of some of the commodities on which action were taken performed over the last seven to eight months.

THE DECISIONS
 

> $950 per tonne minimum export price (MEP) on basmati rice removed

> $550 per tonne MEP on onions scrapped

> Export duty on onions lowered to 20% from 40%

> Zero duty import of yellow peas (matar) extended till December 31 from September 31

> Wheat’s stock limit tightened

> Effective import duty on crude palm, soya and sunflower oil raised to 32.5% from 12.5%

> Effective import duty on refined oils raised to 35.75% from 13.75%