The government may ban wheat product exports in a series of measures to tame spiralling food prices that have fuelled rapid inflation and increased pressure on an embattled ruling Congress party, local media said.
Prime Minister Manmohan Singh is expected to announce measures including banning the export of wheat products and removing essential commodities from the futures market after a cabinet meeting on Thursday, the Press Trust of India reported without naming its sources.
Food inflation, at a one-year high of 18.3 percent, is the highest of the major Asian economies, and is a major headache for a government already battling multi-billion dollar corruption cases that have emboldened the opposition.
Rising prices of basic foodstuffs like onions could threaten the Congress party's chance in elections in states like West Bengal and Tamil Nadu that are key for Singh's coalition to keep a majority in parliament.
India, which has already suspended wheat exports, banned onion exports last month after prices rose by 83 percent since June, the Economic Times reported, forcing the government to request imports from neighbouring Pakistan.