Lok Sabha Question No. 361 (STARRED), answered on 2017-03-28
Subject: Impact of Demonetization on Prices
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: SATYA PAL SINGH, SANJAY SHAMRAO DHOTRE

## Ministry of Consumer Affairs, Food and Public Distribution

## Government of India Department of Consumer Affairs

## LOK SABHA STARRED QUESTION NO. *361

TO BE ANSWERED ON 28.03.2017

## IMPACT OF DEMONETIZATION ON PRICES

*361. DR. SATYAPAL SINGH: SHRI SANJAY DHOTRE:

## Will  the  Minister  of  CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h be pleased to state:

- (a) whether  the  Government  has  conducted  any  study  on  the  impact  of  demonetization  of currency  notes  on  the  prices  of  essential  food  items  and  if  so,  the  details  and  the  outcome thereof and if not, the reasons therefor;
- (b) whether  the  Price  Stabilization  Fund  has  been  able  to  moderate  prices  of  farmers'  produce since demonetization and if so, the details thereof ;
- (c) the commodities procured by the Government directly from the farmers and supplied to the consumers since demonetization;
- (d) whether the Government has closely monitored the activities of hoarders/black-marketeers of essential food items during the said period and if so, the details thereof; and
- (e) the  remedial  measures  taken/being taken by the Government to stabilize prices of essential food items and protect the interests of farmers as well as common man?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k ea=h ¼Jh jke foykl ikloku½

## THE MINISTER OF CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI RAM VILAS PASWAN)

(a) to (e) : A Statement is laid on the Table of the House.

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## STATEMENT REFERRED IN REPLY TO PARTS (a) TO (e) OF LOK SABHA STARRED QUESTION NO.*361 FOR 28.03.2017 REGARDING IMPACT OF DEMONETIZATION ON PRICES.

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- (a) :  No Madam. However, changes in prices of 22 essential food items vis-à-vis the prices on the day of demonetization are being monitored on daily basis.
- (b) :  The Price Stabilisation Fund (PSF) was set up with an initial corpus of ₹ 500 crores in 2014-15 with the objective to tackle price volatility in agri-horticultural commodities, namely, onion, potatoes and  pulses  through  appropriate  market  intervention.  The  PSF  scheme  was  operational  during demonetization and the prices of items covered by the scheme remained moderate during this period. Details are at Annexure .
- (c)  : Around 3.89 lakh tonnes of wheat, 184.45 lakh tonnes of rice and 10.50 lakh tonnes of pulses have  been  procured  from  farmers  since  demonetization.  85.49  lakh  tonnes  of  wheat  and  120.46 tonnes of rice was allocated under National Food Security Act, other Welfare Schemes and Adhoc Additional (Flood/drought/festival/etc) during November, 2016 to February, 2017. In addition, during this period, around 12,900 tonnes of pulses were allocated to States/UTs/Agencies for direct retailing to consumers at reasonable rates.
- (d)  : States/UTs are the enforcement agencies for the 'Essential Commodities Act, 1955' (EC Act, 1955) and the 'Prevention of Black-Marketing and Maintenance of Supplies of Essential Commodities Act 1980'. During the period since demonetization, i.e. November, 2016 to February, 2017, all the States were advised to take up proactive implementation of all the orders/regulations of the  Union  and  the  State  government  issued  under  the  EC  Act,  1955.  During  November,  2016  to February, 2017, States/U.Ts conducted 17506 raids under the EC Act, 1955, arrested 1524 persons, prosecuted 837 persons, convicted 163 persons, detained 46 black marketeers and confiscated goods of value of ₹433.47 lakhs.
- (e)  : Government has taken various measures from time to time to stabilize prices of essential food items as well as to protect the interest of farmers. These, inter-alia,  include creation of buffer stock of pulses  for  effective  market  intervention;  appropriately  utilizing  trade  and  fiscal  policy  instruments like  import  and  export  duty,  Minimum  Export  Price,  export  restrictions  etc.  to  regulate  domestic availability and moderate prices; imposition of stock limits; provision of higher  Minimum Support Prices  to  incentivize  farmers  for  increasing  production;  and  intervening  in  market  for  facilitating reasonable prices to farmers through procurement in case of some commodities through schemes like the PSF, Price Support Scheme (PSS) and Market Intervention Scheme (MIS).

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STATEMENT  REFERRED  IN  REPLY  TO  PART  (b)  OF  LOK  SABHA  STARRED QUESTION NO.*361 FOR 28.03.2017 REGARDING IMPACT OF DEMONETIZATION ON PRICES.

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## Variation in All India Average Retail & Wholesale Prices on 23.03.17 over 08.11.16

|                                     | Retail Prices (₹/Kg.)               | Retail Prices (₹/Kg.)               | Retail Prices (₹/Kg.)               | Wholesale Prices (₹/Qtl.)           | Wholesale Prices (₹/Qtl.)           | Wholesale Prices (₹/Qtl.)           |
|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|-------------------------------------|
| Commodities                         | Price As On 23.03.2017              | Price As On 08.11.16                | Variation%                          | Price As On 23.03.2017              | Price As On 08.11.16                | Variation%                          |
| Pulses                              |                                     |                                     |                                     |                                     |                                     |                                     |
| Gram Dal                            | 88.4                                | 121.69                              | -27.36                              | 8030.9                              | 11394.63                            | -29.52                              |
| Tur/Arhar Dal                       | 88.69                               | 119.12                              | -25.55                              | 8096.69                             | 10969.16                            | -26.19                              |
| Urad Dal                            | 98.43                               | 120.55                              | -18.35                              | 8957.77                             | 11060.61                            | -19.01                              |
| Moong Dal                           | 79.32                               | 84.44                               | -6.06                               | 7133.12                             | 7607.45                             | -6.24                               |
| Masoor Dal                          | 74.82                               | 82.45                               | -9.25                               | 6698.86                             | 7460.74                             | -10.21                              |
| Vegetables                          |                                     |                                     |                                     |                                     |                                     |                                     |
| Potato                              | 13.47                               | 21.25                               | -36.61                              | 970.02                              | 1655.47                             | -41.41                              |
| Onion                               | 14.66                               | 15.8                                | -7.22                               | 1075.01                             | 1155.86                             | -6.99                               |
| Tomato                              | 16.98                               | 22.14                               | -23.31                              | 1271.15                             | 1705.61                             | -25.47                              |
| Source:- State civil supplies Deptt | Source:- State civil supplies Deptt | Source:- State civil supplies Deptt | Source:- State civil supplies Deptt | Source:- State civil supplies Deptt | Source:- State civil supplies Deptt | Source:- State civil supplies Deptt |

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