Govt policies help control prices of commodities
Aug 03, 2022
New Delhi [India], August 3 : India has taken steps to ensure smooth domestic supplies and control prices of key commodities, which has led to July exports being steady at last year's level. Merchandise export in July 2022 stands at $35.24 billion as compared to $35.51 billion in July 2021.
Govt policy has helped smoothened supplies although globally, prices have increased, which amounts to India exporting inflation to other parts of the world.
Prices have spiralled up. India's policy ensured that needy countries got wheat supplies but speculators could not manipulate the market.
India has exported 3.8 million tonnes of wheat so far. We have not curbed wheat export. We have only regulated wheat export, Commerce Secretary BVR Subramanian said on Tuesday.
"Export to Russia has been half and export to Sri Lanka is vanished but I see good export opportunity with Russia in products like tea, coffee, pharmaceuticals and mobile," Commerce Secretary said.
Similarly, the tax on export of petrol and diesel has helped in easing domestic scarcity, while globally the prices of the two fuels have soared. Govt has levied windfall tax on export of petroleum Crude, Diesel and ATF which was rev8sed on August 2 on Petroleum Crude from Rs 17,000 per to Rs 17,750 per ton. On export of diesel from Rs 11 per litre to Rs 5 per litre and on export of aviation turbine fuel from Rs 4 per litre to Nil.
Last month, there were fears that parts of the country may have a severe scarcity of fuel, but the tax on exports made sure that domestic supplies were smooth.
Steel prices, which were raising sharply and hurting India's small enterprises have also been controlled with the help of taxes.
The taxes on exports of fuel have now been reduced significantly and exports of petroleum products are now recovering. Exports are now expected to rise further after the exceptional circumstances in the month of July.
The price cooking oil has also fallen sharply. India had earlier reduced customs duties on oil to ease the sharp increase in the price of oils. The government has ensured that people would have reasonably priced cooking oil available in the festive season.
India's total merchandise exports so far in the current financial year has increased 19.4 per cent to $156.41 billion compared with the same period last year. Export of items other than petroleum products and gems and jewellery have increased about 11 per cent to $110.4 billion.
