The CCP, which met on Monday after a long gap under the chairmanship of Prime Minister Atal Behari Vajpayee, also directed the state governments and their field agencies to monitor price trends. The CCP, the official spokesperson said, would monitor prices of wheat, rice, sugar, edible oils and vegetables on a weekly basis.

The Government has also asked the field agencies to supply advance information about the production and availability of essential commodities so that corrective steps could be taken in time.

The CCP also expressed satisfaction over the recent price movements of essential commodities. It noted that the rate of inflation on point-to-point basis has dropped to a four-year low of 3.9 per cent as on April 24, 1999, against 5.6 per cent during the same period a year ago.

The inflation rate toucheda high of 8.85 per cent in November 1998 following a steep increase in the prices of vegetables, especially onions.

The spokesperson further said that there was sufficient availability of all major commodities including vegetables, and prices had not shown any wide movements in the recent past. The CCP also agreed to a proposal to continue the rubber procurement scheme and authorised the State Trading Corporation to purchase another 20,000 tonne at a price not more than Rs 34.05 per kg.

The rubber procurement scheme expired on March 31, 1999. With the continuation of the scheme, the rubber growers will get remunerative price for their produce, the spokesperson added.

Meanwhile, CCEA approved the investment proposal of National Fertiliser Ltd to expand the existing capacity of urea at its Nangal unit by 450 tonnes per day at an estimated cost of Rs 135.13 crore with a forex component of Rs 79.96 crore.