Lok Sabha Question No. 1859 (UNSTARRED), answered on 2017-03-14
Subject: Price Rise
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: GAJENDRA SINGH SHEKHAWAT, RABINDRA KUMAR JENA, MAULANA BADRUDDIN AJMAL

## Government of India

## Ministry of Consumer Affairs, Food and Public Distribution Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO. 1859

TO BE ANSWERED ON 14.03.2017

## PRICE RISE

1859.   SHRI GAJENDRA SINGH SHEKHAWAT: SHRI RABINDRA KUMAR JENA: SHRI BADRUDDIN AJMAL:

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

- (a) the  details  of  prices  of  essential  commodities  viz.  foodgrains,  pulses,  edible  oils  and vegetables during the last three years, year-wise;
- (b) whether  the  price  of  essential  commodities  viz.  foodgrains,  pulses,  edible  oils,  sugar, milk  and  vegetables  is  rising  in  the  country  and  affecting  common  people,  if  so,  the details thereof including the factors causing the price rise and the extent of the price rise during the last year;
- (c) the remedial steps taken by the Government to contain the rising food prices;
- (d) whether the Government is considering to make  available wheat,  onion  and  oil  etc.  in retail stores, throughout the country to contain price rise and if so, the details thereof; and
- (e) if not, the reasons therefor?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh lh- vkj- pkS/kjh½

## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI C. R. CHAUDHARY)

- (a) : Details  of  prices  of  essential  commodities  during  the  last  three  years  are  at Annexure I .
- (b) :       Over the last year, prices of tur, urad, moong and masoor in pulses; potato, onion and tomato in vegetables; sunflower oil in edible oils have declined while prices of gram dal in pulses; palm oil, groundnut oil, Vanaspati, soya oil and mustard oil in edible oil; rice in cereals and  sugar  has  increased.  Prices  of  other  commodities  have  either  remained  stable  or  rose marginally.

Rise in the prices of essential food items are due to various factors such as shortfall in production, increased transportation costs, supply chain constraints like lack of storage facilities, increase  in  demand  because  of  rise  in  population  and  per  capita  income  and  change  in  food habits.  In  addition,  speculation,  cartelization,  black-marketing/hoarding  also  put  pressure  on prices.

- (c) : From time to time, Government takes various steps to contain rise in  prices  of essential food items. Details are at Annexure II .
- (d) & (e) : No madam. Government is providing highly subsidized foodgrains at ₹ 1/2/3 per kg. for coarse grains/wheat/rice under National Food Security Act,2013, covering two third of the population of the country.

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## STATEMENT REFERRED IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.1859 FOR 14.03.2017 REGARDING PRICE RISE .

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| Commodities            | All India Average Retail Price (Rs/Kg.)   | All India Average Retail Price (Rs/Kg.)   | All India Average Retail Price (Rs/Kg.)   | All India Average Retail Price (Rs/Kg.)   | All India Average Retail Price (Rs/Kg.)   | All India Average Retail Price (Rs/Kg.)   | All India Average Retail Price (Rs/Kg.)   |
|------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| Commodities            | Price As On                               | 1 Year Ago                                | 2 years Ago                               | 3 Years Ago                               | % Variation over                          | % Variation over                          | % Variation over                          |
| Commodities            | 9/3/2017                                  | 9/3/2016                                  | 9/3/2015                                  | 7/3/2014                                  | 1 Year                                    | 2 years                                   | 3 Years                                   |
| Rice                   | 28.81                                     | 26.95                                     | 27.53                                     | 27.42                                     | 6.9                                       | 4.65                                      | 5.07                                      |
| Wheat                  | 24.42                                     | 23.41                                     | 22.61                                     | 21.49                                     | 4.31                                      | 8.01                                      | 13.63                                     |
| Gram Dal               | 90.16                                     | 65.39                                     | 49.32                                     | 48.23                                     | 37.88                                     | 82.81                                     | 86.94                                     |
| Tur/Arhar Dal          | 89.84                                     | 135.37                                    | 81.29                                     | 70.06                                     | -33.63                                    | 10.52                                     | 28.23                                     |
| Urad Dal               | 98.55                                     | 134.76                                    | 79.19                                     | 64.92                                     | -26.87                                    | 24.45                                     | 51.8                                      |
| Moong Dal              | 78.15                                     | 101.19                                    | 98.77                                     | 83.48                                     | -22.77                                    | -20.88                                    | -6.38                                     |
| Masoor Dal             | 74.88                                     | 78.97                                     | 74.25                                     | 59.24                                     | -5.18                                     | 0.85                                      | 26.4                                      |
| Sugar                  | 42.39                                     | 34.61                                     | 33.25                                     | 34.04                                     | 22.48                                     | 27.49                                     | 24.53                                     |
| Milk (per litre)       | 41.11                                     | 39.83                                     | 38.6                                      | 35.45                                     | 3.21                                      | 6.5                                       | 15.97                                     |
| Groundnut Oil (Packed) | 133.01                                    | 124.26                                    | 119.06                                    | 122.45                                    | 7.04                                      | 11.72                                     | 8.62                                      |
| Mustard Oil (Packed)   | 109.8                                     | 109.47                                    | 100.6                                     | 96.57                                     | 0.3                                       | 9.15                                      | 13.7                                      |
| Vanaspati (Packed)     | 77.64                                     | 71.01                                     | 77.23                                     | 74.31                                     | 9.34                                      | 0.53                                      | 4.48                                      |
| Soya Oil (Packed)      | 86.42                                     | 80.48                                     | 85.51                                     | 83.68                                     | 7.38                                      | 1.06                                      | 3.27                                      |
| Sunflower Oil (Packed) | 93.84                                     | 96.44                                     | 93.51                                     | 95.54                                     | -2.7                                      | 0.35                                      | -1.78                                     |
| Palm Oil (Packed)      | 71.01                                     | 64.92                                     | 67.37                                     | 71.23                                     | 9.38                                      | 5.4                                       | -0.31                                     |
| Potato                 | 13.6                                      | 14.88                                     | 16.31                                     | 15.4                                      | -8.6                                      | -16.62                                    | -11.69                                    |
| Onion                  | 14.59                                     | 17.71                                     | 24.63                                     | 16.88                                     | -17.62                                    | -40.76                                    | -13.57                                    |
| Tomato                 | 16.8                                      | 18                                        | 19.88                                     | 14.64                                     | -6.67                                     | -15.49                                    | 14.75                                     |

Source: - State Civil Supplies Departments.

## STATEMENT REFERRED IN REPLY TO PART (c) OF LOK SABHA UNSTARRED QUESTION NO.1859 FOR 14.03.2017 REGARDING PRICE RISE .

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Steps  Taken  by  government  from  time  to  time  to  control  prices  and  improve  availability  of  essential commodities:

## (a) General Measures:

-  National Consultation Meeting of Ministers of States & UTs in charge of Food and Consumer Affairs, on prices  of  food  items  was  held  on  21.5.2016  at  New  Delhi  to  take  steps  to  keep  prices  of  essential commodities including Pulses, Edible Oil etc. under control.
-  Advisory were issued to State Governments to take strict action against hoarding & black marketing and effectively  enforce  the  Essential  Commodities  Act,  1955  &  the  Prevention  of  Black-marketing  and Maintenance of Supplies of Essential Commodities Act, 1980.
-  Regular review meeting on price and availability situation is being held at the highest level including at the level of Committee of Secretaries, Inter Ministerial Committee and other Departmental level review meetings.
-  Higher MSP has been announced so as to incentivize production and thereby enhance availability of food items which may help moderate prices.
-  A  Plan  Scheme  titled  Price  Stabilization  Fund  (PSF),  implemented  to  regulate  price  volatility  of agricultural commodities.

## Specific Measures:

## Pulses

-  Government  has  approved  creation  of  buffer  upto  20  lakh  tonnes  of  pulses  for  appropriate  market intervention.
-  Subsidized unmilled pulses from the buffer stock were offered to States/Agencies for direct distribution to public/consumer at a reasonable rates.
-  Export of all pulses is banned except kabuli channa and up to 10,000 MTs in organic pulses and lentils.
-  Import of pulses are allowed at zero import duty.
-  Stock limit on pulses extended till 30.9.2017.
-  Securities  &  Exchange Board of India (SEBI) banned new contracts in Chana to dampen speculative activities  in  Chana  and  in  respect  of  running  contracts  in  Chana  disallowed  taking  fresh  positions  to reduce speculative activities.
-  Pulses seized through raids and disposed of either by auction or other means permitted under EC Act, 1955.

## Edible Oils

-  Export of edible oils in bulk is prohibited with some exceptions.
-  Export of edible oils in branded consumer packs of up to 5 kg. is permitted with a minimum export price of USD 900 per MT.
-  MSP (including bonus) increased for various rabi and kharif oil seeds.

## Vegetables:-

-  To improve domestic availability MEP of USD 360 was imposed on Potato till December, 2016.
-  Reduced import duty on Potatoes from 30% to 10% till end October 2016.
-  A buffer stock of around 17,747 MT of onion was created.

## Sugar:-

-  Government imposed stock holding and turn over limit on stockiest/dealers of sugar on 29.04.2016 for six months to check speculative tendencies and possible hoardings.
-  Stock limit was also imposed on Sugar mills to prevent hoarding of stocks by them.
-  Withdrew production subsidy scheme before time, vide order dated 19th May, 2016,  to discourage Sugar mills from further export as the scheme was linked with the export performance of Sugar mills.
-  Government imposed 20% duty on export of sugar for promoting availability and moderating price rise.

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