Lok Sabha Question No. 358 (UNSTARRED), answered on 2020-02-04
Subject: Food Inflation
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Prasun Banerjee

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

LOK SABHA UNSTARRED QUESTION NO. 358

## TO BE ANSWERED ON 04.02.2020

## FOOD INFLATION

358. SHRI PRASUN BANERJEE:

## 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 is aware of the extent of food inflation and if so, the details of steps taken/being taken to control it; and
- (b) the  reasons  behind  food  inflation  when  the  economy  is  growing  at  a  slower  pace  every quarter?

## ANSWER

## miHkksDrk ekeys] [kk| vkSj lkoZtfud forj.k jkT; ea=h ¼Jh nkuos jkolkgsc nknkjko½

## CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION

## THE MINISTER OF STATE (SHRI DANVE RAOSAHEB DADARAO)

- (a) :    Food inflation based on Consumer Food Price Index (CFPI), brought out by M/o Statistics and Programme Implementation (MoSPI) from September to December, 2019 is given below.

| All India Inflation rate (%) based on CFPI   | All India Inflation rate (%) based on CFPI   | All India Inflation rate (%) based on CFPI   | All India Inflation rate (%) based on CFPI   | All India Inflation rate (%) based on CFPI   |
|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
| Index                                        | Sept'19                                      | Oct'19                                       | Nov'19                                       | Dec'19                                       |
| CFPI                                         | 5.11                                         | 7.89                                         | 10.01                                        | 14.12(P)                                     |

P - Provisional,      Source: MoSPI.

Government has taken various measures from time to time to stabilize prices of essential food items which, inter-alia, include appropriately utilizing trade and fiscal policy instruments like import duty, Minimum Export Price, export restrictions, etc. to regulate domestic availability and moderate prices;  imposition of stock limits and advising States for effective action against hoarders & black marketers ; and, provision of higher Minimum Support Prices to incentivize farmers for increasing production.  Government  is  also  implementing  Schemes  which,  inter  alia,  include  Mission  for Integrated Development of Horticulture (MIDH), National Food Security Mission (NFSM), National Mission  on  Oilseeds  and  Oil  Palm  (NMOOP),  etc  for  increasing  agricultural  production  and productivity  through  appropriate  interventions.  Besides,  Government  is  also  implementing  Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities like pulses, onion, and potato.

- (b) :    Increase in prices of food items is mainly on account of demand supply mismatch owing to shortfall in production because of adverse weather condition and seasonality, increased transportation costs,  supply  chain  constraints  like  lack  of  storage  facilities  and  artificial  shortage  created  by hoarding and black marketing.

*****