Food inflation prompts Cabinet to extend stock limits on cereals for a yr

Defers decision on FDI relaxation in realty, pharma due to Model Code of Conduct

States will now be able  to impose limits on stocks of cereals for one more  year  to contain food  prices  which are exerrting pressure on overall inflation these days.

The Cabinet today took a decision to extend an order in this regard till NOvember 30, 2014.

The validity of stock holding limits order on paddy and  rice, which have been extended regularly, was to expire in the current 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," officials said.
 
The objective of the Central Orders is to enable state governments to continue to take effective de-hoarding operations under the Essential Commodities Act, 1955 by fixing stock limits.

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

The wholesale price index-based inflation stood at around 18.2 per cent in October, which pushed  up the headline number to around 7 per cent.

Jute Order:
The Cabinet Committee on Economic Affairs (CCEA) extended the mandatory requirement of packaging 90 per cent  of the  production of food  grains and 20 per cent  of sugar in the jute packaging material for the 2013-14 year (July-June) with some exceptions. The approval will provide relief to 3.7 lakh workers employed in jute mills and ancillary units as well as support the livelihood of around 40 lakh farm families.

Scientific deep drilling in a seismic zone in Maharashtra
CCEA approved a Rs 472 crore proposal to undertake scientific deep drilling in the Koyna intra-plate seismic zone in Maharashtra.

The drilling will provide a unique opportunity to better understand the mechanism of reservoir-triggered earthquakes, developing a forecast model and assessing earthquake hazard in a stable continental region.

FDI in Pharma and Realty
The Cabinet deferred two important proposals  on reviewing FDI  policy in construction development sector and pharmaceuticals. The Cabinet has been deferring these crucial proposals for quite a number of times  due to  model code of conduct, those in know of the development said. Two states-- Rajasthan and Delhi-- are  yet to  go to polls.