Concerned over the surging prices of essential commodities, the Government on Thursday banned export of pulses, allowed private players to import wheat and limited import of sugar.
State governments are also urged to take adequate steps against hoarding if it is taking place, Finance Minister P Chidambaram told reporters after Cabinet Committee on Pricing met in New Delhi.
"Wheat, pulses and sugar are driving prices up. Therefore, the decision has been taken to augment the supply side. We are confident, that with these decisions, inflationary expectations will be dampened," Chidambaram said.
He said inflation relating to manufactured products is extremely low.
Reasons behind inflation relating to fuel are well known, he said.