Lok Sabha Question No. 514 (UNSTARRED), answered on 2019-06-25
Subject: Price Control of Pulses and Edible Oils
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Rahul Ramesh Shewale, Bhartruhari Mahtab

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

## Department of Consumer Affairs

## LOK SABHA UNSTARRED QUESTION NO.514 TO BE ANSWERED ON 25.06.2019

## PRICE CONTROL OF PULSES AND EDIBLE OILS

## 514. SHRI RAHUL RAMESH SHEWALE: SHRI BHARTRUHARI MAHTAB:

## 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  issued  instructions  to  the  commodities  futures  regulator Forward Market Commission (FMC) to curb speculation and price manipulation in farm items particularly pulses and edible oils keeping in view the high rise in the prices of pulses and edible oils in the country;
- (b) if so, the details thereof along with the implementation status of such instructions;
- (c) whether  the  Government  has  decided  to  stepping  up  imports  of  pulses  and  edible  oils projecting that the demand of pulses and edible oils is likely to exceed their supply in near future;
- (d) if  so,  the  details  thereof  along  with  the  quantum  of  pulses  and  edible  oils  likely  to  be imported; and
- (e) the other corrective steps taken/ being taken by the Government to keep the equilibrium in the demand and supply of food items particularly pulses and edible oils?

## 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)  &  (b)  :  Consequent  upon  merger  of  regulatory  functions  of  Forward  Market  Division  with SEBI vide Finance Act 2015, SEBI is presently the regulator of commodity derivatives market. Cases of suspected speculation and price manipulation in the agricultural commodity derivatives are taken up by Government regularly with SEBI. Further, in order to strengthen and maintain the integrity  of  the  commodity  derivatives  market,  SEBI  has  taken  various  measures  and  has prescribed  specific  norms  in  the  areas  of  risk  management  like,  imposition  of  additional  or/and special  margins  to  contain  high  volatility  in  commodity  derivatives  prices,  position  limits,  daily price limits, governance of stock exchanges, registration of brokers etc. SEBI is also carrying out integrated monitoring and surveillance of trading activity, under which, the commodity derivatives market is continuously kept under watch to ensure market integrity.

(c) & (d) : As per the 3rd Advance Estimates released by Department of Agriculture, Cooperation and Farmers Welfare, production of pulses for the year 2018-19 is estimated to be 23.22 Million MT  (MMT)  as  compared  to  25.42  MMT  as  per  final  estimates  for  the  year  2017-18  while production  of  oilseeds  for  the  year  2018-19  is  estimated  to  be  31.42  Million  MT  (MMT)  as compared to 31.46 MMT as per final estimates for the year 2017-18.

The total availability of edible oils from all sources (primary and secondary) for 2018-19 is estimated at 99.94 LMT as against 103.80 LMT in 2017-18. The country has to rely on imports to meet  the  gap  between  demand  and  supply  of  edible  oils.  Import  of  edible  oils  is  under  Open General  Licence.  In  the  year  2018-19  (Nov-Apr),  7.44  MMT  of  edible  oils  was  imported  as compared to 14.59 MMT in 2017-18. In case of pulses, import during 2018-19 stood at 2.53 MMT as against an import of 5.61 MMT in 2017-18.

- (e) :  Government has taken various measures including initiatives for increasing production and  productivity  of  pulses  and  oil  seeds  through  National  Food  Security  Mission  (NFSM)  and National  Mission  on  Oilseeds  and  Oil  Palm  (NMOOP)  respectively,  promulgating  appropriate Minimum  Support  Price  (MSP)  to  incentivize  production  of  pulses  and  oil  seeds,  introducing suitable  trade  and  fiscal  policy  measures  to  promote  availability  of  pulses  and  edible  oil  at reasonable  prices.  In  addition,  Government  has  signed  a  MoU  with  Mozambique  for  assured supply of Tur and other pulses, and also undertakes calibrated releases of pulses from buffer from time to time to moderate price fluctuations.  Also, Government closely monitors prices of pulses and edible oils for timely interventions in case of price fluctuations.

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