NEW DELHI: Taking a step to combat inflation, the Centre government Tuesday decided to scrap import duty on crude palm and soya oils and ban export of non-basmati rice and pulses.

The decisions were taken at a meeting of the Cabinet Committee on Prices at Prime Minister Manmohan Singh's official residence here Monday.

While interacting with the media persons Finance Minister P Chidambaram said that the CCP approved ban on export of non-basmati rice with immediate effect and decided to extend the ban on pulses export for one more year from Tuesday.

These decisions will come into effect from Tuesday midnight, but a notification would be issued Wednesday, he said.

Chidambaram said all edible oils in crude form can be imported at zero duty, while the duty on oils in the refined form would be 7.5 per cent.

He further said that the government also decided to raise the Minimum Export Price of Basmati rice to USD 1,200 per ton from USD 1100, to discourage export and increase availability in the domestic market.

It also cut import duty on butter and clarified butter (ghee) from 40 per cent to 30 per cent.

States also advised to impose limits on stocks of commodities under the Essential Commodities Act, besides asking steel producers not to raise prices.

Responding to whether these measures would help in containing inflation, which has touched 6.68 per cent for the week ended March 15, Chidambaram said: "I sincerely hope so."