Prices of essential commodities are coming down: Sharad Pawar

Finance minister Pranab Mukherjee may announce a compensation package to Punjab and Haryana, when he presents the Budget tomorrow, for their massive efforts to save paddy crop helping the country tide over a drought last year.

An indication to this effect was given by food and agriculture minister Sharad Pawar while replying to the debate on price rise in the Lok Sabha.

"At an appropriate time, Punjab and Haryana will be paid back by the Centre," Pawar said, suggesting prime minister Manmohan Singh has been favourable to the proposal.

In his intervention, the finance minister too praised Punjab and Haryana for their initiatives.
   
Pawar said the country has been able to considerably reduce the possibility of damage to paddy crop as initially it was thought that there would be 16 million tonnes less rice production than last years' record 99.18 million tonnes.
   
But the gap has now been estimated to be only about nine million tonnes, he added. According to government estimates, India is going to produce 87.56 million tonnes rice in 2009-10.

Responding to the debate on price rise, Pawar said prices of essential commodities including pulses, sugar and vegetables were coming down.

As compared to the prices of sugar, chana, tur, urad and potato prevailing three months back, there has been a downslide a month back and some further decline yesterday, he said.
   
The minister also said that sugar prices are likely to be stable at Rs 35-36 a kg level, belying speculation that it was heading towards Rs 50 a kg.

When sugarcane farmers are receiving a record Rs 250 a quintal, the sugar prices are bound to be more, he added.