Cabinet may discuss extending stock limits on paddy, rice

NEW DELHI: To check hoarding and contain price rise, the Cabinet is likely to discuss a proposal tomorrow to extend the order restraining traders from holding stocks of paddy and rice beyond a limit for one more year.

The validity of stock holding limits order on paddy and rice, which have been extended regularly, will expire in the current month.

"The Cabinet is scheduled to meet tomorrow. The Food Ministry's proposal on extending validity of central orders dated December, 2012 in respect of paddy and rice beyond November 30, 2013 is on the agenda," sources said.

The proposal is to extend the stock holding limit on these two commodities for one more year till November 2014. Seven states including Andhra Pradesh, Delhi, Maharashtra, Tamil Nadu and Manipur have sought extension, they 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.

Besides, the Cabinet is also likely to consider another proposal to exempt exporters of rice, edible oilseeds, edible oil from stock holding 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.