Following are the decisions taken at the meeting of Cabinet Committee on Prices yesterday. The text of the Finance Minister's briefing on the above meeting is as follows:

Rice

There will be a ban on the export on non-basmati rice. In respect of basmati rice, the MEP will be increased to $ 1200 per metric tonne.

Edible oils

In the case of all edible oils, crude form of the edible oil will be allowed to be imported at zero duty and the refined form will be at a duty of 7.5 per cent. This will apply to among other oils, palm oil, sunflower oil, soyabean oil, coconut oil, groundnut oil.

Hydrogenated vegetable fats and oils will also be allowed to be imported at 7.5 per cent customs duty. Wherever tariff values have been fixed, those tariff values will continue until any further revision is announced.

Pulses

The ban on export of pulses will be extended for one more year beginning 1st April, 2008.

Other food items
The customs duty on butter and ghee will be reduced from 40 per cent to 30 per cent. The customs duty on maize will be reduced from 15 per cent to 0 per cent under the Tariff Rate Quota of 5 lakh metric tones.

Some administrative measures

In order to enable imposition of stock limit by State Governments, the Order on removal of licensing restrictions that applies to edible oils, oilseeds and rice will be kept in abeyance for one year. This means that State Governments can impose stock limits. However, inter state movement in imports will be excluded from the proposed order in stock limits. Export of castor oil, coconut oil and all oils produced out of minor forest produce except sesame oil will be allowed. However, coconut oil export will be allowed only from Kochi port. The export quantities will be monitored and this permission to export will be available until further orders.

Some other matters were discussed especially prices of steel and iron were discussed. Since the Minister for Steel is traveling abroad, it has been decided to defer a decision until his return. There are some reports that the steel producers are planning to raise prices. I would, on behalf of the Government advise them to observe restraint. The CCP was informed that Ministry of Commerce and Industry and the Ministry of Steel are trying to bring the iron ore producers and the steel producers together and try to work out a way to moderate prices. It is likely that this meeting may take place tomorrow or day after tomorrow. So my advise to the steel producers would be to observe restraint. Government is extremely concerned about the rise in steel prices, prices of steel products.

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RCJ/SH/LV

Import duty adjustments and export restrictions to curb food price rise, with revised tariffs and state stock limit powers. Government imposes a ban on non-basmati rice exports, raises the minimum export price for basmati rice, extends a pulses export ban, differentiates import duties for crude and refined edible oils with reduced duties for refined and hydrogenated fats, maintains existing tariff values pending revision, reduces customs duty on select staples and applies a Tariff Rate Quota to maize; administrative measures permit State stock limits by keeping licensing removal orders in abeyance while excluding inter state import movement and authorising monitored oil exports under conditions.