<div>With prices of pulses on the rise, the Centre asked state governments to exempt commodity from VAT and local taxes besides acting against hoarders.<br /><br />The Centre also said it was keeping a watch on price of sugar, which was around Rs 40 a kg, and would not hesitate to cut down import duty and ban exports if prices rise further.<br /><br />At a meeting of state food ministers, Union Food Minister Ramvilas Paswan said exempting pulses from VAT and other local taxes would lead to a five to seven per cent decline in its retail prices.<br /><br />Paswan also wanted the state governments to set up their own Price Stabilisation Fund that could be utilised to check prices of pulses and other essential commodities.<br /><br />The average price at 93 centres across the country for urad was Rs 170 a kg, while tur was retailing at Rs 140 a kg and gram at Rs 70 a kg.<br /><br />On rising sugar prices, the minister said the current price – Rs 40 a kg – was justified as its production cost was Rs 32-33 a kg.<br /><br />“If prices increase from the existing level, we will also look at the option of lowering import duty and banning exports,” Paswan said.<br /><br />Rs 23 last year<br />Last year, mills were selling sugar at Rs 22-23 a kg, which was much below the production cost due to excess stocks. This led to millers running up arrears of up to Rs 21,000 crore.<br /><br />Paswan said that with rise in sugar prices and steps taken by the government, outstanding dues by millers to farmers has declined to Rs 800 crore.<br /><br />Paswan also said that he has written to governments of Karnataka, Maharashtra, Uttar Pradesh, and Tamil Nadu to keep a close watch on sugar stocks held by millers to ensure availability in the domestic market.</div>
<div>With prices of pulses on the rise, the Centre asked state governments to exempt commodity from VAT and local taxes besides acting against hoarders.<br /><br />The Centre also said it was keeping a watch on price of sugar, which was around Rs 40 a kg, and would not hesitate to cut down import duty and ban exports if prices rise further.<br /><br />At a meeting of state food ministers, Union Food Minister Ramvilas Paswan said exempting pulses from VAT and other local taxes would lead to a five to seven per cent decline in its retail prices.<br /><br />Paswan also wanted the state governments to set up their own Price Stabilisation Fund that could be utilised to check prices of pulses and other essential commodities.<br /><br />The average price at 93 centres across the country for urad was Rs 170 a kg, while tur was retailing at Rs 140 a kg and gram at Rs 70 a kg.<br /><br />On rising sugar prices, the minister said the current price – Rs 40 a kg – was justified as its production cost was Rs 32-33 a kg.<br /><br />“If prices increase from the existing level, we will also look at the option of lowering import duty and banning exports,” Paswan said.<br /><br />Rs 23 last year<br />Last year, mills were selling sugar at Rs 22-23 a kg, which was much below the production cost due to excess stocks. This led to millers running up arrears of up to Rs 21,000 crore.<br /><br />Paswan said that with rise in sugar prices and steps taken by the government, outstanding dues by millers to farmers has declined to Rs 800 crore.<br /><br />Paswan also said that he has written to governments of Karnataka, Maharashtra, Uttar Pradesh, and Tamil Nadu to keep a close watch on sugar stocks held by millers to ensure availability in the domestic market.</div>