New Delhi: Wholesale rate of sugar, wheat and rice on Thursday fell by up to Rs 50 a quintal in Delhi, a day after the government decided to offload 2-3 million tonnes of food grains in the open market and allow duty-free import of white sugar.
While prices of sugar fell by Rs 50 a quintal at Rs 4,350, that of rice and wheat declined by Rs 15 and Rs 20 per quintal respectively, according to traders.
>"Fresh measures like increased supply in the open market to curb rising sugar prices is a major concern. Traders refrained from enlarging their positions," a trader said, adding sugar mills also released more stock in the market.
Wholesale prices of wheat fell by Rs 20, or one per cent, to Rs 1,980-2,230 per quintal at the grains market in the National Capital. In the rice segment, permal wand fell by Rs 15, or almost one per cent to Rs 1,735-1,885 per quintal.
Traders attributed decline in wheat and rice prices to government's decision to release 2-3 million tonnes of wheat and rice in next two months in the open market.
In sugar, the government allowed white sugar imports till December this year without any quantitative restrictions and also permitted mills in Uttar Pradesh to process imported raw sugar in other states.
In early November, UP had banned processing of imported raw sugar due to farmers' protest over cane pricing. Nearly nine lakh tonnes of sugar is lying at ports due to the ban.
Food Minister Sharad Pawar had said yesterday that sugar prices have declined in last two days and is expected to fall further in next 7-10 days.
PTI
First Published: Thursday, January 14, 2010, 20:38