Lok Sabha Question No. 276 (UNSTARRED), answered on 2020-09-15
Subject: Food Inflation
Ministry: CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION
Asked by: Balashowry Vallabbhaneni

## Government of India

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

## LOK SABHA

## UNSTARRED QUESTION NO. 276

TO BE ANSWERED ON 15.09.2020

## FOOD INFLATION

## 276. SHRI BALASHOWRY VALLABHANENI:

## Will  the  Minister  of  CONSUMER  AFFAIRS,  FOOD  AND  PUBLIC  DISTRIBUTION उपभोक् तामाम  ,खाद्यऔरसार्वजनिकनर्तरणमंत्री be pleased to state:

- (a) whether the food inflation has gone up from 5.1% in September, 2019 to 14.12% in December, 2019;
- (b) if so, the details of status in January and March, 2020 and March to August, 2020;
- (c) the details of factors being taken into account to calculate food inflation;
- (d) the remedial measures that the Government is taking to contain food inflation; and
- (e) the manner in which the Integrated Development of Horticulture and National Food Security Mission are helping to contain food inflation along with the impact of COVID-19 on food inflation?

## ANSWER

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## THE MINISTER OF STATE CONSUMER AFFAIRS, FOOD AND PUBLIC DISTRIBUTION (SHRI DANVE RAOSAHEB DADARAO)

(a) to (c) : As per Consumer Price Index compiled by Ministry of Statistics and Programme Implementation (MoSPI) , the food inflation was 5.1% in September, 2019 which had gone up 14.12% in December, 2019. In January, 2020, the food inflation was 13.63%. As per the latest available figure, food inflation  in  July,  2020  was  9.62%  (Provisional).  Food  inflation  captures  the  year-on-year  increase  in  the indices of food items in the consumption basket.

(d) & (e) : 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 and 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.  Government also implements Price Stabilization Fund (PSF) to help moderate the volatility in prices of agri-horticultural commodities  like  pulses,  onion,  and  potato.  As  part  of  Economic  response  to  Covid-19,  foodgrains  are distributed  at  the  rate  of  5  kg  per  person  per  month,  and  pulses  are  distributed  at  the  rate  of  1  kg  per household  per  month  ,  free  of  cost,  to  all  beneficiaries  of  the  National  Food  Security  Act  (NFSA),  2013 under Pradhan Mantri Garib Kalyan Anna Yojana  (PMGKAY) for the period of eight months from April to November 2020. In addition, foodgrains at the rate of 5 kg per person per month, and pulses at the rate of 1 kg per household are distributed, free of cost, to migrant workers who are not covered under NFSA for the period of two months, from April and May 2020. Distribution of foodgrains and pulses under PMGKAY and ANB have contributed to ensuring the availability of food items during lockdown and in controlling food inflation.

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