The price of food items at the utility stores has been increased, the Utility Stores Corporation has notified the new prices.
The government increased the rates of 20 kg and 10 kg bags of wheat flour by Rs 150 and Rs 75, respectively. The new price of a 20 kg bag of flour is Rs 950 against the earlier rate of Rs 800.
After the surge, a 10 kg bag of flour would now cost Rs 475 per kg against the old price of Rs 400. The price of sugar has been increased by Rs 17 per kg. The new price of sugar is Rs 85 per kg against the earlier rate of Rs 68 per kg. The government also increased the price of subsidized ghee by Rs 90 per kg. Now ghee is sold at Rs 260 per kg against the old rate of Rs 170 per kg.
However, the Economic Coordination Committee (ECC) of the cabinet decided a week ago, to increase food prices of wheat flour, sugar, and cooking oil in the range of 19% to 53% at the Utility Stores by reducing subsidies for the poor, taking a second major administrative decision in as many days that will further fuel inflation.
The ECC meeting also approved to import 200,000 metric tons more sugar, taking the total quantity to 300,000 metric tons within three weeks.
The ECC also gave nod to the revision in prices of three essential commodities namely flour (20 kg bag) to Rs 950, ghee (per kg) to Rs 260, and sugar (per kg) to Rs 85, owing to a cumulative gap between the subsidized prices offered by the USC and the prevailing market prices.
At that time, the wheat flour prices were increased by 19% or Rs 150 per 20 kg to Rs 950 whereas, the market price of flour, according to the industries ministry, is Rs 1,235.