The Government has decided to raise paddy procurement prices of Nadu rice variety by 12.5 percent to USD 339 per tonne. Keeri Samba rice will be procured at a price of USD 376 per tonne. The measure aims to build up stocks after soaring rice prices in the second half of last year due to a sharp contraction in production following drought conditions. Prices have started to decline from their peaks of the last quarter of 2014 with the ongoing 2015 Maha main crop harvest and the government’s release of imported rice stocks. In order to reduce food prices, the Government has also waived import duties on wheat grain and reduced prices of wheat flour (a substitute for rice in the national diet) which fell by 11 percent in February. Consequently, the Association of Bakeries has lowered prices of bread and other wheat flour products. Additionally, the Government has reduced price of other food staples, including sugar milk and canned fish.