The food ministry, earlier this year, had proposed a 30% hike in levy sugar prices from Rs 13.5 a kg to Rs 17.5.
There would be some drop in the production of pulses and coarse cereals,” said Agriculture Secretary Ashish Bahuguna.
"Mills have not been able to sell 2 lakh tonne. We may allow them to sell that unsold quantity till September 10," said an official.
The spurt in rains prompted weather office to change its forecast for the Sept rains. It now says that rainfall in Sept will be better than expected.
The PSUs have suffered a loss of Rs 652 while importing pulses for the government for general supply as well as supplying subsidised pulses through ration shops.
BJP president Nitin Gadkari has urged Prime Minister Manmohan Singh to take a decision on sugar reforms before a new sugar season starts in October.
The late revival of monsoon has brought rains across major parts of the country, particularly north and north-west parts, which were reeling under drought-like conditions.
The government's godowns are overflowing with grains due to a record carryforward stock of 20 mt and further procurement of 38 mt.
The government is mulling the delisting of low-production commodities such as guar seed, guar gum, mentha oil and cardamom from futures trading.
A late spurt in rains may have induced flood-like conditions in a few parts of the country but the fear of an El Nino weather pattern continues to play big.
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