The government also decided to convene a meeting of food ministers in February to review the steps taken by the states to control prices and also to evolve a mechanism to check hoarding of essential commodities.
After reviewing the food prices scenario with top level officials today, new food and consumer affairs minister KV Thomas exuded confidence that onion prices will come down and said steps will be taken to augment supply of milk and milk products.
The meeting attended by cabinet secretary KM Chandrasekhar, chief economic adviser Kaushik Basu, Secretary in the food ministry and his counterparts and other concerned ministries.
The government also decided to convene a meeting of food ministers in February to review the steps taken by the states to control prices and also to evolve a mechanism to check hoarding of essential commodities.
The government also decided to formulate a scheme to strengthen the State Civil Supplies Corporation.
Food inflation stood at 15.52% for the week ended January 8, mainly contributed by rise in prices of vegetables, milk and poultry products.
"Onion prices will be brought under control in the next 15 days," the minister told reporters after the meeting.
The government said the prices of onion would come down as a result of fresh arrivals. Besides, out of the contracted 1,000 tonnes of imported onions, 300 tonnes have already arrived and another 426 tonne is on the way, it added.
Onion prices today softened from the two-day old price of Rs50-65/kg in the four metros to Rs30-45 a kg in all metros except Chennai, where the vegetable is still being sold at Rs60 per kg due to shortage of supplies.
On milk front, the government said it will ask the department of animal husbandry, dairying and fisheries (DADF) and national dairy development board (NDDB) to improve supply.
"It was decided in the meeting that DADF along with NDDB will take steps to improve supply situation of milk and milk products and DADF will also keep the stocks under constant monitoring," according to the statement issued after the meeting.
The Centre also decided to formulate a scheme to strengthen the state civil supplies corporations as this would help the government in market intervention during price rise.
"It (the scheme) will include conditions which promote efficiency and transparency in the corporations and assistance will be contingent on the same," the statement added.
That apart, Thomas will chair four regional conferences of food ministers and secretaries next month to review measures taken by state governments on the price front. "The working of the APMC Act and its impact on prices will be reviewed (in the conferences)," the statement said.
During the meeting, the implementation of the scheme of 'subsidised distribution of imported edible oils' by states was reviewed.
"The states, which are not availing of this scheme, will be requested to do so," the statement said, adding that the efforts to make PDS supplies transparent and more effective would continue.
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