Lok Sabha Question No. 684 (UNSTARRED), answered on 2017-12-19
Subject: Rise in Prices of Vegetables
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: SUPRIYA SADANAND SULE, JAYADEV GALLA, HEENA VIJAYKUMAR GAVIT, JAYAKUMAR JAYAVARDHAN, P.R. SUNDARAM, RAJEEV SHANKARRAO SATAV, VIJAYSINH MOHITE PATIL

## GOVERNMENT OF INDIA

## MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.684

TO BE ANSWERED ON THE  19 TH  DECEMBER, 2017

## RISE IN PRICES OF VEGETABLES

## 684.   SHRIMATI SUPRIYA SULE:

SHRI JAYADEV GALLA:

DR. HEENA VIJAYKUMAR GAVIT:

DR. J. JAYAVARDHAN:

SHRI P.R. SUNDARAM:

SHRI SATAV RAJEEV:

SHRI MOHITE PATIL VIJAYSINH SHANKARRAO:

Will  the  Minister  of  AGRICULTURE  AND  FARMERS  WELFARE      ‡ãðŠãäÓã एवं  कसान कयाण ½ãâ¨ããè be pleased to state:

- (a) whether  there  is  a  sharp  rise  in  prices  of  vegetables,  food  items  and  other essential commodities during the last few months inspite of better monsoon, if so, the reasons therefor;
- (b) whether it is a fact that the prices of tomatoes and onions in wholesale and retail markets have increased exorbitantly during the last few months;
- (c) if so, the details thereof indicating the rise in prices in terms of percentage; and
- (d) the  long  term  and  short-term  measures  taken/proposed  to  be  taken  by  the Government to bring down the prices of vegetables and other agricultural commodities so as to bring them within the reach of the common man?

## ANSWER

MINISTER OF  STATE IN THE  MINISTRY OF  AGRICULTURE AND  FARMERS  WELFARE

‡ãðŠãäÓã एवं  कसान  कयाण ½ãâ¨ããÊã¾ã  ½ãñâ  Àã·¾ã  ½ãâ¨ããè (  SHRI PARSHOTTAM RUPALA)

- (a): As per the data available with the Government, there is no significant change in the  prices  of  food  items  and  other  essential  commodities  during  the  last  few  months. However, an inflation of 22.48% has been observed for vegetables (Source: CSO press release dated 12.12.17).

Prices of fruits and vegetables sometimes  increase on account of crop seasonality and unfavorable weather conditions.

(b) & (c): It is true that there is a spike in the prices of onion in past three months in the wholesale and retail market. However, the spike in prices is primarily on account of around  30%  less  sowing  of  onions  during  kharif  season  owing  to  less  rainfall  in  the southern States and also due to unseasonal rains in Maharashtra which damaged the onion seedlings. The prices of tomato have been broadly similar during the corresponding period and have in fact declined marginally.

The variation in prices of tomato and onion in wholesale and retail over past 3 months is as under:

|        | %variation over 3 months   | %variation over 3 months   |
|--------|----------------------------|----------------------------|
| Crop   | Wholesale Price            | Retail Price               |
| Tomato | -8.46                      | -4.54                      |
| Onion  | 75.78                      | 65.24                      |

(Source: Department of Consumer Affairs)

(d): Steps taken by Government to control the prices of fruits and vegetables are as follows:

· The  Govt.  is  implementing  the  scheme  called  electronic  National  Agriculture Market (e-NAM) to lower transaction costs to buyers and stable prices and availability to consumers.

· Farmers are mobilized into Farmer Producer Organizations (FPOs) for aggregation and economies of scale. Efforts are being made to link FPOs to market by way of direct marketing farmer consumer markets/ Apni Mandi and e-markets.

· Assistance  is  provided  for  development  of  post  harvest  management  and marketing infrastructure such as cold storages, ripening chamber, pack houses, reefer vehicles, primary and wholesale markets, Kisan Mandies, etc.

· Market Intervention Scheme (MIS) for procurement of horticultural commodities which are perishable in nature and are not covered under Price Support Scheme.

Recently,  considering  the  rise  in  prices  of  onions,  Government  has  taken  the following steps:

1. Minimum Export Price (MEP) of USD $850 per MT imposed on onion.
2. Department of Consumer Affairs (DoCA) has enabled States to impose stock limit on  onions  till  31.12.2017.  Producing  States  were  advised  to  take  action  against hoarders/traders  engaging  in  illegal  practices  and  ensure  adequate  availability  of onions in the markets at reasonable prices to the consumers. Government of Uttar Pradesh has recently imposed stock limit on onion wholesalers.
3. National  Agricultural  Cooperative  Marketing  Federation  of  India  Ltd  (NAFED)  and Small Farmers Agribusiness Consortium (SFAC) were directed to procure 10,000 MT and 2,000 MT respectively from producing regions. In addition, producing States have been requested to procure onions through their agencies and supply them to Delhi  to  help  moderate  their  prices.  The  onion  is  being  retailed  through  SAFAL, National  Cooperative  Consumers'  Federation  of  India  Limited  (NCCF)  and  also through auction in mandies to improve availability and moderate prices.
4. Government  of  NCT  of  Delhi  has  been  requested  to  facilitate  the  distribution  of onions through their channels to ensure availability at reasonable prices.

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