New Delhi: Prices of sugar and wheat have shown a falling trend in last couple of days, agriculture minister Sharad Pawar said on Thursday.
He said prices of the sweetener have shown a fall in various spot markets.
In recent weeks, India extended duty free imports of white sugar until 31 December, asked sugar mills to sell on a weekly basis from fortnightly sales earlier, and ordered bulk consumers to hold stocks for 10 days, instead of 15 days.
“Prices of essential commodities have shown declining trend,” Pawar said in the Parliament replying to a discussion on price rise.
Latest government data showed food price index rose 17.58% in the 12 months to 13 February.
Sugarcane farmers are receiving a record price for sugarcane and it will prompt them to raise output, he said.
“As on today the farmer in Uttar Pradesh is getting somewhat between Rs250-260 per quintal price for sugarcane, which he never got in the last 50 years.”
Higher cane price also contributed to a rise in sugar price, but the price will stabilize near Rs35-36 per 100 kg, he said.
In 2009-10, India is likely to produce 15.3 million tonnes, falling severely short of domestic consumption of about 23 million tonnes for a second straight year, a Reuters poll showed, paving way to large scale imports.