Govt eases grain movement rules for private players

NEW DELHI (Reuters) - India on Thursday relaxed restrictions on movement of foodgrains by private firms as state-run agencies had moved sufficient grains across the country to ease price pressures.

The ministry had restricted movement of grains by private firms to free wagons for state-run agencies to move grains quickly from northern India to rest of the country.

"In view of the improved situation, the minister has now instructed for a relaxation of the restriction on movement of foodgrains on private trade account," a statement from the railway ministry said.

India is increasing local supplies of food items and improve supply management, as part of efforts to tame inflation that touched a 3-1/2-year high of 7.83 percent in early May.