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India has no immediate plans to abolish the import duty on wheat, but it will reduce the limit on the amount of stocks that traders and millers can hold, Food Secretary Sanjeev Chopra told reporters on Thursday.
New Delhi was considering cutting or even abolishing a 40% import tax on wheat as part of efforts to boost supplies, a government official said last month.
India will release more wheat stocks into the open market if required to curb prices during the coming festive season, Chopra said.
"There's adequate availability of wheat, rice and sugar in the country but some unscrupulous elements are trying to take advantage of rumours about supplies," he said.
Wheat prices are trading near their highest level in seven months, while sugar prices on Thursday rose to their highest in six years.
Chopra said the country is holding 8.5 million tonnes of sugar, sufficient to fulfil requirement of than three and half months.
"Despite sufficient stocks, a sense of artificial shortage is being created in the country," he said.
"The government is fully prepared to meet festival demands for rice, wheat and sugar," he said.
India is the world's second biggest producer of sugar and wheat.
Edible oil prices have come down in the last few weeks, tracking price movements in overseas markets, but there is no proposal to raise import duty on edible oil, he said. (Reporting by Mayank Bhardwaj; Writing by Rajendra Jadhav; Editing by David Goodman and David Evans)